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Weekly Ohio State journal (Columbus, Ohio : 1841), 1843-03-01

Weekly Ohio State journal (Columbus, Ohio : 1841), 1843-03-01 page 1

TATE JOTJRNA Jj. VOLUME XXXIII. COLUMBUS, WEDNESDAY, MARCH 1, 1843. NUMBER 27. WEEKLY 0 0 I'UUUSUKU EVEKV WKUNErtUAY, BV ClltBLia gCOTTi Office sorner of High and Town '". Bulll'' Building. TERMS; .... . TMRll! Dol.l.iH f EB iiiul, whiehmay bodiicharged by lh?oynKnl of Two Dollarl and Fifty Cent. .J. .dvw.ce, it the oliiee. fi m Dnily Ohio Slate Journal per annum jr uu Tri-YVeekly Ohio Slate Journal perenmim.... uu All letlora ou badness of the office or containing temillan. ee. n u.lb. P V- ltrl''''""' P""i bJ low Inremit monoy lo pay tub.criplion.lo newtpapert. The Banks and the Currency. MPEECII OP mn. RKWTON, In iha Senate. January 30, 1843, on llic bill lo regulate Banking in Ohio Mr. Lwtos ad.lro.Kd tho Scale a. lul-Iowa : MR. Spcakeb-T regret that the discussion or Uu. important subject should have fallen upon one no little acquainted with the fundamental principles upon which it is baaed, and thoir practical application to the business of life. The laws of trade have created the necessity for a currency. In what it shall command how regulated, haa agitated many and even most of the nations of the world, in different periods of their political history. Amidst the van-ous commercial and political revolutions incident to all governments, that agitation has fallen upon the people of Ohio, at a most unpropitious period, when we are laboring under the most severe pecuniary embarrassment and pol"'"1 animosity. And the most casunl observor cannot but discover that the tendency of that agitation has arrived at this point-. -u.ii i i,..,o currency of coin or papers the friends and advocates of a currency of coin, seem to vield to the glunng necessity uio., iut u. u..., ii .' e . ,,i,r rbnracter. and irovorned by ex traordinary laws, and guarded by unusual and weigh- '.. ..... ln4 a nlivn thn aitMla Ihpu ty responsibilities, may mi m . ..---, hive created and entailed upon community. Lxist, air, as does the felon, until a convenient tune arrives 10 destroy thorn. On the other hand, tho triends and advocates of a paper currency, based upon specie, .... ,1,0. ii b,,a fr its foundation and authentici- ... .i.. ,.l,,,l wisdom and experience of many nations, and by far the most wealthy and commcr- .i... it ,fnnna nil tho various operations of commerce, manufacture! nd agriculture with more ..:m ...A . much stability as coin. That com .. lj ......nnin. the combined results of wis. doin and experience, are as strong, powerful and stable B! tho bowols of the oarth, moulded into coin. Which of these thooriea, Mr. Spookor, have the itrongest claim for adoption and the patronage and protection of the government to sustain them, would .coin lo be the ultimate, though not the immediate: .: kc, n. What ariruments, sir, do the friends of a currency of coin urge to you, and thro' you to the country, In favor of ns adoption ? i hey urge that gold and silver, ior auoui years, has furnished tho only true standard of value u a circulating medium, and that the wealth of the world is not increased by tho circulation of paper as money. It is true that specie, among many nations, has been and is still regarded as the basis upon which to form a medium of exchange that shall fur-nish a measure .if value for all the various avocations pursued and commodities produced by man. But ciu ti.nt it ta tho onlv safe one unit can be adopted and used in all tho diversified pursuits of c ...... i.f hnainpaa nnd nrrll. monkind in me perioniiai..- . mulalion of wcoith ? Tlicro is not in nature any permanent standard of value. There is no cotnmodi-IV, the relotivo value of which, compared with all others, is not subject to great change and fluctuation. What is wealth, in it! most general and com- i. .;., ..,,. s It is the combination of integri ty skill and intelligence; and the accumulation of " l .: . .l.n.n ntlrihlltfta. Tn aiV property is out muiueiiv . - - - -j that a well regulated paper currency adds nothing to the wealth of a nation, is a proposition so narrow and confined as to produce no conviction upon tho j r :.. ...ih hut carries its own fallacy in its 1II1IIU Ul IU1 .U.K., -, own terms. No inanimate commodity is valuable, except what is made so by arbitrary rules, compact, and agreements, or by the bestowal of labor, or per- formanco of skill, except mat wiucn grow. neous from the earth and furnishes food for man and beast Paper is aaid to be nothing hut tho representative of money. 1 cannot so regard it- It repre-. ents trade and comtnorce in all its vast variety You have made it money as much as any other .ubstance yon call such. Why is gold and liver money? Is it natural name given for it? It will not be io laid. Then it has acquired the name by use and for utility, so has paper. When a paper currency is regulated by trade, or based upon spe cie, ana governea oy wwo ..... .....-., .-- will command a specie dollar at all limes, it is just as valuable as a dollar in coin, and is capable of ; performing a far greater .mount of business with less expense. Has paper any alloy ? so has gold and silver: one-eleventh part or it ii sucIl Another argument urged against a paper currency is if we have it, wo lhall m ike coin into spoons and other things. This is an argument I cannot stop to consider but for a moment. Waa gold and silver formed in tho earth by the great author of all things for monoy alone, or for all the various purposes that the ingenuity and enlcrpriso of her inhabitants should devise for tho cumulation of wealth, and enjoymont Hold and silver from tho earliest times have been used for articles of ornament and luxury. Aa well, and with Iho same force might you say that iron should alonobo mado into plough-shares or pre-ning hooks, or lead into tho plummet for the school-b y Look about you and seo the various new uses to which iron has been applied within a few years past. By the use of paper it is said the mines bo-co.no leas valuable. If there is any with in this ar-giiment, it must ariso from the fact that by the uso of paper, tho demand for coin is lessened, llus there ever been a time in tho history of this country, in which labor might not ho as successfully employ-cd in the manufacture of gold and silver, as if wo had not a paper dollar in circulation? I .ay Here has not. Thorn has, at all tiroes been a full employment for the labor of Iho country fur more prohtohly than in the manufacture of gold "ni "'""i not bocauso there uu no demand fur it, but because or the ex-r n.niiimr it. It is ono uf the dearest coin- inoditic. producud by tho hand or man. We have no silver mines in the United States, and our gold mines cannot be worked at a profit of over aoventy-tlvo cents a day to the owner. It is universally admitted Ihot tho gold mines of the country are nothing like as valuable as our alono coal. In Ohio for the laat three years por has boon decreasing rapidly, and your products increasing to that tho exports amount to about twenty millions. W hy I. it that .,. h .. .lm decreased ? Alain: it is said that paper docs not incrcaao tho circulation. This argument ii based upon tho hypothesis that it is worthless, and is calculated to drivo coin out uf the country, or hoard it up. Coin in this country is lino all other articles of property-it conatantly, to a greater or less extent, changing it! ligation. II you take it abroad to buy property, you bring its equivalent in return. As yuu oxport your property, you It is said paper will cause coin to be hoarded up. It ia liili. ull to sco how it will perforin the double office of driving olf, and hoarding up. There is, Bgrco, a strong infatuation pervading the public mind as to tho value and utility of gold and silver. But I cannot agree that the miserly disposition is increased by the use of papor but I believe it u decreased. Thore is, in tho circulation or papor, in all it. vari-etv, omething commercial, enterprising and exten-ivo in its operations, arising from iu facility and capacity lo perform a great amount of business, and iU tendency is to .timiilato lo industry and business in all iu channels, and as this increase, tho dispoai. lion to hoard diminishes. It i. said by the Senator from Richland, that a currency of coin will be larger than th it of paper. It is difficult to seo by what course of reasoning tho Senator brings his mind to that conclusion. Tho amount of currency required in any cuuntry i. ascertained more from tho amount of business done, than from tho number or inhabitant. In Prance, the oroatest amount or their cur. roncy is coin j they have a population or ;5 million, capital in monoy or 570 millions, and they only export 1 10 millions. A largo unioiint of tho cuin of thn country is hoarded .lid not used aa currency. Their country is trnill, their population dense, governed by tho samo laws, their property unequally di-vidod. The first class wealthy and indoolnt, and Iho lecond, poor and wretched. The first class too much money tn dio with, .nd the second too little to live with. Thov do very littlo trading except in the ne-cess.ric. of life. In all countries whore coin is the currency, they havo a grestor proportion or their capital in money, than in those countries where papor is used, but it is inactive. It ia bare capital, and not put to any beneficial use. You have a proor or this in Knirlaml and America. In England they have a population or 'AOOO.WKl, and only currency or 4:15,000,00(1, and export ;HT,01KI,UIIU. i ncir currency is nearly all paper. They are th. most wealthy ind powerful nation on cartli, .nd no doubt havo a greater currency than France. In America we hate ' population of IB millions, t currency of 1H millions, (only 30 of it is coin out of bank,) and an ex-mit of ia millions. The Senator assert that a currency of paper corrupts tin morals of tho people, and place, tho power in the hands of a few. This is one of the new popular theories or the day, but ilnout precedent or example in tne nisiory oi nations. Are tho moralsof this country more impure and corrupt than in France, Russia and Cuba ? Has not the Senator too much pride of country to believe that ? Compare the morals of England and Franco, and does he there find the truth of the assertion ? Is Cuba, to which the Senator refers with so much seir satisfaction, a proud example to prove the moral, intellectual and physical condition of 1 country that haa a currency ot coin r In the hard money countries of Italy, Sicily, Por-tuiral. and Spain, tho condition of the poorer classes, and their morals, i. the most wretched. In Italy, J many hundred thousand are actual beggars. In Havana, an exclusively hard money country, the morals are notoriously bad ; and the great mosses sre most wreicneoiy poor, i no same is tne coae in uunuvcr, Hesse, and most of the smaller Principalities throughout Germany. So i. it in Denmark, Sweden, and Norway also hard monoy countrios largo numbers ot Uicir inhabitant, are oeggars. in Hanover or Saxonv. with the same currency, the situa tion of the people will not compare with Holland, Austria, 1'russio, and Sweden, where they havo paper money. Austria has a National Bank : Prussia ha. Treasury Note., and a Bank or Discount and Deposit. There are fewer immigrants from Austria and Prussia than any part of the continent. Money is more or less powerful in all countries, and under all circumstances. It commands influence, exerts pow er, performs and facilitates business in all it. vast variety, dcvelopc. the resource, of the earth, unfolds the energies of tho mind, awakenB genius and enterprise, and extonds intercourse. To say that if it exists in the form of Bank paper it corrupts the morals more than if it was in coin, is a proposition that may suit the prejudice of somo, but can never satisfy the judgment of any. The people in this country have tho power, and when they delegate it, they do it to promote their own interest and convenience. The proporty or the country is more equally divided among the people than in any other nation, and being so, it becomes necessary in order to carry on any considerable amount or business, to form compacts and associations, by reason of which their capital may be united, and thereby enabled to enrry on a largeramounlof business. How could the business of this country be done by a currency of coin ? It would be impossible. Tho Senator from Gallia, in his argument, has gone extensively into this part of the subject, and I will make but a passing remark. In tho first place, we should havo to purchase tho coin, ir we wish to use it abroad, it would cost rrom eight to nine per cent to transport it. An immenso amount of labor and caro would be required in transmitting it from place to placo in all the various avo cations in which we are engaged. But this question was settled in our early history, and indeed it may bo said wo brought the principles with us when we emigrntcd to this country. True, in the early his tory oi our country, some eminent men doubled as to iho expediency of adopting a pnper currency ; and I am referred to Washington and Jefferson, but they yielded their doubts, and most willingly united nil their powers and energies in establishing Bunks, tho mils oi which furnished a currency that raised us from poverty to wealth and power, and justly became the pride of our country, and even of nations ahroad. Would to (iod wo had at the present day, hard money men of the same calibre. Stability of purpose is the great axle upon which tho prosperity of nations aa well as individuals depend. Tlieso early institutions outlived their patrons, nnd if the ever varying political and party strifes of the duy had not placed upon them its iron grasp, would have continued, and with them the prosperity of Iho country. We find os early as 7(i(j, when Dr. Franklin was inquired of by the British Parliament as to the feeling or America towards tho Mother Country, ho informed thnt body that she complained because not permitted to make Banks. In December, 17ril, Congress incorporated tho Bank of North America to aid in discharging tho debts of the Revolutionary War, nnd it performed all the function, for which it wa created. In 11)1 tho United Slates Bank was incorporated and continued until lrJll, during which period no Nation was more flourishing and prosperous; and from that tn IHIti, what was the history of the country ! The Government was destituto of a currency, to supply which it issued Treasury Notes, and tho Secretary of tho Treasury issued a Circular saying that if the Banks in tho dilfercnt States would receive them, then tho bills of tho different Banks should bo received for the dues to the Government, which induced tho Banks to issue a largo amount of paper in this State, as well as in others. Withdraw. ing tho paper of that Bank, left a large vacuum to be supplied by the States, which had the s-imc effect aa the destruction or that 11 ink in leVKi, Uiougli not to so great an extent, as commerce and trade iiad not been so extensively developed. The War that existed during that period had increased the volue of the product, and diverted the public mind rrom tho ordinary pursuit, or business, and thereby lessened their ability to discharge thoir obligations. These causes, with others, led to tho difficulty that your Hanks experienced in IHPJ. Your Banks thit you then had, contributed largely to discharge tho bur den, of Ihe War ot If IV. Uhillicotho and Miami Kxportinir Company loaned to the Government near ly half a million, and they, together with Ihe four other, that then existed, loaned the State about fS0,-000 to discharge a direct tax imposed on her by Congress, by which the State saved 15 per cent, on tins sum. The first Bank incorporated in Ohio was the Mi ami Exporting Company on tho 15th of April, IrJIKt, with a capital of (100,000, five dollars in money on each share and 45 in produce to be paid in during that vear. No restrictions contained in the charter. The Bank or Marietta was incnrKrated in February, 1H0& The Bank or Chillicotho ir. tho same month and year. The stock or the fust was $500,000 and tne latter ?IOO,000. In February ISO!', the Bank of Nteubenville was incorporated Willi a capital of $ 100,-000. In February If I,', Hie Muskingum Bank was incorporated slock fIOO.OOO. In February 181'i the Western Reserve Bank capital 1100,000; ami in February lrji:!, the Fanners' and .Mechanics' Bank or Cincinnati 700.000 capital. These Bank, had a right to increase their capital to S.'OO.IKK), except the Chillicotho, and that to $500,000. These Bank, had no restriction, except they should not owe at any one time, exclusive or deposits, more than three limes the amount or their stock paid in. Nothing is said about paying their slocks or redeeming their bills in coin or siecic I believe the words are not used in these chorion. One provision contained in these charters is thai thn legislature had tho right to repeal or amend. There is ono express prevision contained in them that tho Courts should be liberal in its construction. These are the only llmks that you had until IHlli, when many more were chartered. Inthst yoar the United States B ink was again chartered and continued until IKki; and the history or Unit, during that period, in the performance of all the oltices for which it was enacted and the instrumentality it furnished as a medium of exchange at home and abroad, will bo undcr-itood and appreciated w hen party strife shall coaso to dulugc the land and drown the voice of reason. From that period, wild experiment, upon the currency, incoherent Ihnkiug in some instance., and a constant party warfare against all Hunks, has influenced the public mind, desiniyed the stability of your laws, anu depreciated mo vaiuo ot all mo property in your State ono fourth ; and, as ir lo bury u. all in one common grave, Hononiblo Senators upon this floor are delivering hard money speeches. Bank Commissioners making hard money reports, and member, hurling them on the wings of tho wind to a distressed and agitated people. Your potent party editor, gleaning as if from the regions of the dead, every hard money scrap, revamping and republishing it, hy which heated nioelinga are held and inflammatory resolutions passed and sent In you, air, as if containing the index of public feeling and senliment hy which you propose to relieve tho public distress under whose scorching influence all are withering, and amidst this whirlpool of confusion. Senators are bring ing in new flank bills and withdrawing old ones from day to day. What! Mr. Snooker, Senator, called upon to mako Banks, while they stand nvorthem with a two edged .word in each hand ready to cut oft tho Imad of the monsters aa soon as they have created mem r Permit me, Mr. Hp aknr, for a few moments to fol low the history of Ohio banking from IrllfL, before wo arrive at the immediate question before us, in or dor that we may see the apidication of your present laws upon tho old banks. In that year the Franklin Honk of Columbus, tho Iincaster Bank, Belmont Honk at St Clairsville, Commercial Hank or Lake brio, Mount Plensant and West Union were incnrpo rated. The capitalstock ofoach 100.000 and rlivi ded into shares of f 100 each; ono tenth of the shore, tn be paid when aubacribed, and Iho balance a the directors shall direct, and to go into operation aa soon as fliOO shares are subscribed ; also, at tht same time, Iho Lebanon Miami Banking Company, una oi Cincinnati, urnana Dinking Company, u. luinbiana Bank of New Lisbon, Fanners' Mechanics' and Manufacturers' Bank of Chillicotho, Gentian Hank or Wooster the stock of tho l-obonon M. B' Co. f iOO.OOO, the Bonk of Cincinnati (KKJ,000, Ur ban f.100,000, Columbiana 'W0,0O0, Fanners' Mo. chanics' and Manufacturers' Bank of Chillicothe $200,000, and the German B. of Wooster 200,000. All these Bonks had the power to increase the a-uiuunt of their stock to $500,000. The Slate of Ohio to have one share to every twenty-fivo, in all the Bonks. No provisions in their charters a. to the manner in which the slock shall be paid, or bills redeemed, no allusion to specie or coin, (further than that implied by law,) oxcept what follows. Tho stockholders not to impair the stock, and the Danks not to issue at any one time more than three times the amount or slock paid in, one half of which, at fensf, must be paid in iptcie ; if they violate those provisions directors to be individually liable. Not to take more than six por cent interest All these charters to continue until the first day of January, 104J, anu u extended an tne ennrtcra ot all the other Banks that had been incorporated before to thesamo timo, and the act of 1810 held out this encouragement if any of tlieso Banks will accept of charters and go into business they shall be exempt from any tax imposod by the laws of this State. No provisions for repealing or amending any of the charters, and the Supreme Court to decide whether the charters are violated in a quo warranto ; and "the act to be construed in all Courts and places benignly and favorable for the beneficial purpose, hereby intended." In 1817, the Farmers' and Mechanics' B. of Steu-benville, with a capitol or $500,000; also Commercial B. or Scioto, capitol $100,000; also Hamilton Bank, capital ftJOO.OOO; also Gallipolis, capital : 100,000; also Circloville Bonk, capital K300.000; also the Little Miami Canal Banking Company, capital $.'100,000 ; were incorporated under the law of Into, and subjected to Us provisions. In February, IH'JIf, the Geauga Bank was incorporated, capital $100,000. This Bonk for tho first restricted to issue. exclusive of deposits, not more than twice the amount of capital paid in. Ono tenth port ot capital to be paiu down in specie. In the samo year the Commercial Hank of Cincinnati was incorporated, coni- tol $500,000, and to continue until first of January, Ion. i he llank not to issue more than twice tho amount of stock paid, exclusive of deposits, This Bank, for the first, was required to redeem its bills in coin, or pay IS por cent interest In ISil tho Nor- woik Dank was incorporated with $100,000 capital, The bank was permitted to owe thrco times tho amount of the stock paid ia The Legislature, for the first time in a Bonk charter, reserved the right to repeal. In 10.1-1 number more hanks were incorporated, among which was the Bank of Wooster, with $100,000 stock. It was not permitted at any one time to owe more than three times the amount of stock paid in, cxclusivo ot deiosits, and was required to redeem its bills in coin, or pay twelve per cent Tho right to amend tho churter after iM'i was retained. In tho some year tho Honk of Mas-sillon wns incorporated with a capital of $200,000 and the charter to extend until the first day of June, lf55. Tho restrictions ore the same as those in the Wooster Honk. The right to repeal retained, if Honk refuses to pay coin. Tho samo year the Bank of Xenia wua incorporated with a capital of $100,000, the charter to extend until the hint day of May, 1850. This Bonk not to owo mora than twice tho amount of stock poid in, exclusive or deposits, and not to suspend the payment or it. bills in coin, under penalty or paying twelve percent After 1H40 the Legislature had a right to prohibit tho Hank from issuo- ing bills loss than five dollars; aller 1812 the right to repeal or alter was retained. The same yoar the Ihnk of New Lisbon was incorporated, to extend to 1850, with a capital of $100,000. The debts not to oxcecd twice the amount of capital paid in and required to pay coin for their bills. The right to ro-icol after 184'i was retained. Tho same year the Lo Favetto H. of Cincinnati was incorporated, capital $1,000,000, and extended to 1854. Tho restrictions the samo aa the last The Honks of Circloville, and also Clinton B. of Columbus were incnrH-roted tho same yeor. Tho first with a capital of $200,000; tho charter extending to 1855. Tho re striction and requirement a. to indebtedness and reuecming diiis in coin, tne somo as tuo last as soon a $50,000 was paid in, the Bonk was permitted lo go into business. Tho Clinton Bank with a capital of $:IOO,000 and the charter to extend to 1854; restrictions and requirement, tho same as tho last As onn as $ I .iO.OOO was paid in, tho Bonk permitted to go into business. The Life and Trust Company was incorporated the samo year with a capital of W,nuu,uuu, and was permitted to loan money (o ono half of the capital, and to double the amount of deposits, (to be secured by mortgngc.) This bonk had ngnt to issue paper until im.l. Since that time no now Bonks havo boon chartered. Many of these charters were liberal to the Bankers and not sufficiently guarded to protect the people tromtneovertraiimgoi me Banks, tme error wos that they wore permitted to owo three times tho amount it their stock paid in, exclusivo of their deposits, I think no Bonk should be permitted at any time to owe, exclusive of deposits, more than onco anil a half ol her cupilai paid. 1 he restrictions wore loose in relation tn paying in their stock and redeeming their notes. Tho charters vary very much. There is scarcely any two alike. Too much Bank capital wos created, and entirely too much at one tune, instead of keeping pace with tho improvements of the country and increasing with its wants and requirements. In a single year Irnin littcen to twenty Btnks were created. And by whom wos it done ? Hy tho people themselves through their Representatives. From 1818 to 1 82 1 many ol Ihe Banks fulled, arising in port, as I before remarked, Iroui tho embarrassment created by the War, and by tho destruction of the United Motes Honk, which induced a large issue. At the closo of tho War the country was ambition, lo return to business, which would be the means, with' out great caution, of a large circulation of money, coupled wnn tne tact mat a largo amount ol Monk capital had been created. These causos all conspir ing would bo calculated to produce revulsion. .Mast ol those Banks that suspended novo sooner or Inter redeemed Uicir bills, and tho total Ins. to cm-inunity from them i. nothing like what i. supposed. III ltd I, a largo number or Bonks were chartered, and in January 18115, there were 24 Bonks doing bu siness with a circulation of $5,221, 520, and in specie in the Bonks, $1,707,K15; and in Ictki, January 1st the circulation hod increased lo Ki,l.,lH I, and the siecio to $2,'.4.00ii, and Ihe 11 inks to III. Those Honks hod a capital ol ,:(;, 1 1, but not all paid in. The business of lcSWi will lung bo remembered. .Men had left their larms, Mechanics their shops, Law yers their offices, and Clergymen their desks, lo become rich in wild schemes of speculation. Tho circulation had increased Ihot year $1,454,125. Such experiments are hazardous, yea, fittat tn the prospcri ty or a country. A sud.len iucrcaso or the tiurrunry is a. hixnrdniis as a suuuen decrease, though Iho cl- fect not so immediate. Sudden prosierity is apt to make men giudy and tiiougmicss, while advursity mokes them sullen and unyielding. Up to this yoar tho public sentiment hod been decidedly in favor of Batiks in this ntatc, and had even gono loo lar and created too many, with loo loose restrict ions. In 1KI7 a party warfare began against them. That clou, of men who had ociora peon regarded as respectaulo and their business honorable, were vilified and libel ed aa common plunderers of the people. Tho wild exsriinents tn which I hove before alluded, the over-trailing of IcSkl, the wrty warf iro enkindled against them again pretluced a difficulty,and they were under the necessity of siHpeiiding, nlonly hero, but almost universally throughout tho whole country. In January 18:15, there were U2 Bonk, with capital of .'','.'l,,JKi, with a circulation ni J"-vr,'.i( I, and i pocie basis ol r; l,l,u,,tn. in iicccmbcr ol that yeor, there were IK1 Bonks in business w ith a capita of $ I l,:HI,iil8, and a circulation or $ti,22l,l:ki. Tin circulation thnt yeor was reduced over $2,000,000. In 18.18 tho Hanks began to do business again, and in April lrtd, they hod a circulolon of $8,157,171, and specie $J,iilt,814. From these statements it is claimed that Banks will expand and contract to such an extent as to destroy their utility. To settle this question with any degree of satialaction, look back to these various charters that I have described. See their previsions. You hod given thorn liboralones; authorised them to issuo a very lurge ainoimt, and had creatod a groat number in ono year. 1 he public sentiment was in their favor; tlicro waa a great demand for money. A greater amount of currency wa. created thon was necessary. Tho muney hail been token and applied in the purchase of lands. Bonks not being restricted, somo of them hsd left the legitimate business or Banking nd invested their money in stocks. When they were in litis situation a portitan warfare was waged against them ; the peo ple had borrowed their money and lelt tho ordinary pursuit! of agriculture and invested it in land, and could not pay them. They were then under the ab solute necessity ol collecting in their money a. tar could bo, in ordor lo prepare lor ihe threatening stonn that was thundering about and around them. And as they collected it in, Ihey Inoned it out again spar ingly. A circulation of $8,157,871 in 18.CI was not an extravagant issuo for the business wo were then doing. If the Banks had been guarded hy one half the previsions you now have, there would have been no danger of any loss. If any danger can arise from an over issue, it is from the fact Dial thore had been an error in the mode of creating the capital. There is no mora difficulty in regulating a Bank so as to make it useful to community, thin Uiure i in re gull. ting a clock or watch : but there is a much dansrer I of destroying their utility in rude hands as there is in destroying Uie utility ot either ot uiese instruments. If the country had been inflated with too great a currency of paper, who created it ? Who gave the power to inflict the evil ? Who was the iudge of the quantity required ? Who made the laws to regulate lis issuer 1 answer, tne Legislature itselt. J he same body that the people in 183 set to inquire a. to tho most judicious means to remedy that which they.upposed tobeoporalinginjuriously. What was the remedy adopted to cure the body ? Cut off Iho nend. I will now give the substance of the law of 1831), most of which is still in force. Three Bank Commissioners were appointed to visit Ihe Bonks once ft year, or as often a. they pleased, without giving any notice, and examine all the affairs of the Bank, inspect all their pipers, count all Uicir money, and swear the officers lo any statement they ask for. If the Commissioners find that the Bonks hove violated any of tho provisions of their charters, or other acts binding on tliein, they shall immediately apply to the Court for a writ of mandamus to wind up the Bonk. All the Bonks to furnish monthly statement, of their condition to the Commissioners, and the Commissioners to report quarterly to the Auditor of State. If the Banks refuse to let the Commissioner, search, their charter, are forfeited. By tho 10th section of the act pago 128, it provides that the Bonk, .hall not at any one time owe, by bond, bill, or other contract, exclusive of deposits, more than one and a half time, the amount of stock paid in, and stock note, .hall not be stock paid-in ; nur shall the Bonk, have in circulation at any ode time, in their bills, more than three times the amount of specie in their vault, belonging lo the Bunk, exclusive of deposit., and in case or excess, in this particular, the directors .hall be liable in their individual capacity, and after them tho stockholders to the amount of excess. The 1 Hli section provides that if the bills have been altered, tho Bonk shall pny them. 12th section the Bonks shall not buy their bills at a discount lUih section if Banks refuse to pay their notes in gold and silver, when presented, they shall pay twelve per cent, penalty as interest 14th section if the Bonks shall refuse to redeem bills in gold und silver or good Bonk nutes, for a longer time than thirty days, in any one year, tho Commissioners may hove the Bank closed up. Tho I5ih and 17lh sections, relate to the manner of closing up the Bonk. Tho Ititn provides it ollicers conceal any property to de fraud to bo sent lo Penitentiary. The 18th section provides if tho assets are not sufficient to pay the debt, of the Bonk, the Court shall render judgment against the stockholders for tho balance. In 1840, another act was passed. The 1st section provides over again for making out a stutcment of their alfairs otlen as they are called on, and to transmit a schedule, swoni to, to the Commissioners and Au ditor. 1 he 4th section if Bonk officers make a hilso schedule, they shall be sent to tho Penitentiary. 5th section ir Iho Bonks shall nt any timo refiiso to comply with tho provisions of this net, or the acts to which this is an amendment, or shall foil to muke a schedule when required, or shall refuse to give any statement when required, their charters shall be forfeited, and they shall be immediately closed up. Tho next year another law is passed. The 1st section Honks shall all poy their notes in gold nnd silver, and if they do nut their charters are forfeited. If they fiil to pay their hills in gold and silver, they shall bo deemed to bo insolvent 2d sectiun it the) hove forfeited their charters, they shall not make an assignment 'M section tho Bonk Commissioners shall apply for an injunction to close the Honks, ir they hove forfeited their charters. Tho balance of tho act up to the 24th section, provides for the proceedings against the Banks iu closing them up. The 21th section that after the bills shall be redeemed by the Receivers, they shall burn all of them in the presence of the Shcrilf and Auditor of the county where tho Honk wns created, and the Shentt shull give tho Receivers a certificate ot tlio ninount and number and denomination or tho bills that arc humcd ; and the Receivers shnll, in the pre- sence of the same officers, burn all they had on hand at the time they tuko possession, and have all the bills and burning registered. As it tcartul thnt the monster would from ashes spring into life and being again, the Sid section repeals so much of 1st, 2d ana fd sections ot tho law ol 18f!t as are inconsistent with this act; also, the 5th, lllth, 14th, 15'h, Kith, 17lh, 18th and 21st sections of the some act; also. the 7th section of tho set of 1840; but reserves all forfeitures and penalties under the fonner Inws. Tho Ulli section provides that if the Bonk ollicers reluse to do any thing that this law require, to be done, tficy snail go to Uie fenitcntiary. Ily a law passed in 1811, page 70, it is provided that all chartors, whether possessing Hanking pow. crs or not, that shall bo hereafter granted, shall be subject to slterntion, suspension nnd repeal, in the iligrrttion of Uie Legislature. You con scarcely open your Statute Bouk, but that you find some sido cut to hedge up tho way of Uie Banks. Are thoso laws such as the Legislature had any right to make? It is clear to mo they had not They are palpable violations of tho Constitution of the United States. J ho 10th section provnlioi that no stale snail moke an et pott inrio law, or low im pairing the obligation of contract!. These charters are contract, mode with tho State; cost vour eye nacK and aeo what their provisions are. they hod a right to lasuo three timus tho amount of tlieir capi- tnl, no provision how they should redeem their bills; and vast many other provisions, not contained in the old charters, that are made imperative upon them in these laws of 18:10, 1840 and 1841. You require them to poy their notes Unit hove been forged ; and it tho lfouks do not obey tho mondote ot your dic tation, you send Uiem to tho Penitentiary. You mako an express contract with them; they go into business under it; years afterwards, when there is a revolution in public sentiment ft revulsion in busi ncss and trade, Uio Buik. somewhat extended, tho' nothing like as much aa their charters permitted of tnem, you spring upon them ft now set ot low. un-heard of in any country, and which they could not comply with, a. they and tho country were situated, hy which you have destnyed the Banks and Bankers, The Hanks havo lost by these laws hundreds of dol lars, where the people hnvo ono; and the penplo, al so, by tho fury of party excitement havo lost hun dred. of dollara, where Uiey would one, if you had pursued the same course that a discreet individual would in his private affaire, when he found himself cmonrrasscd. Vhot has been tho rffect of these law. in detail ? In April, IKtt I have before remarked that wo had s, circulation nf $8,157,871, and $2,010,814 in spe ed in one month tho currency was reduced to $7,. 855,141, and tho specie to $2,5t!7,28li; in tho next month to 7,424,(il l and the speeio to rA-l-XVi and in January 1840 to $4,007,127, anil specie to $1,752,410; in January 1841 to $1,880,257, and in July or tho same year to $ UK 18,7: 12, and specie to $8:17,457 ; and in January 181.1, the Banks reduced tn ten, and thn currency tu $l,2;i2,45ti, and cuin to y lts',4 l.i. hat distress and cnuiusion must bo produced by any policy thot would, in a littlo more than two years end ft hair, reduce tho currency or ft nourishing and growing country from $8,157,871, to $l,rl,-M). it has porulvxed all enterprise, dcslny ed all confidence, and produced utiwirullc!cd distress and dismay, it ho. wrested tho property nl individuals from their hand by Uio strong ami of the law, and mono them paupers. I'etitious day by dny ad monish us of Uioso truths, yet before Uiem the power of party inlluence is inflexible and unyielding. By it you render embarrassment more embarrassed. By disregarding the snlcnm obligation nr your contracts, and adding to them new and infamous penalties, such as sending men to tho rcnilcntiary lor not perforin. ing what you require by vour new enactments you territrmen by your boldness and distrust Una it como to this, that in order to induce men to observe your Bank charters, you must guord them ith the terror, of tho Penitentiary ? II to our shame it be so, you might is well induce ft pmdenl cautious man to take a rattlo-anako by the tail to keep tho reptile from biting, n. tn touch your chatters. By tamper ing with your currency law. irein year to yoar, you drive the capital h-om vour State, and it is now taking place rrom day to dny to day to an alarming extent, oven in the city in which you are now legislating, and even among your own party. 1 u detor any one from bringing any among us. But the Senator from Richland soys it is an injury to have any Bank capi tal owned abroad, aa it only enable, the merchant nnd man nf business to get oxchanges, and bring property from ahread, and sell it on trust After the session or Uiis Legislature no Senator will be troub led in that way, I think. What air, I. our situation? Our Public Debt is increasing to an alanning oxtcnt Property is worth cotnwralivcly notliing. Taxes are increasing, and you are now searching every con- nd closet science by your oaths, and every pocket an by your ollicers lor new articles ot taxation. The Hon. Senator from Monroe says them are times that try men's tools. Would tn God they wmim u nun vwtvi. nib mi uio true policy. What currency do we want f To answer that inquiry we must look to our inhabitants, and see w hat are their habit, and occupations, and Uicir capacity to transact business. The property or Ohio is estimated at $500,000,000 1 and it is distributed among our inha- itant. more equally than in almost any other coun-ry. We are ft trading people. Our property, real and personal i. often changing hands. Wo want ft currency of at least $0,000,000 and ft Banking capi tal of $12,000,000, to make it perfectly safe. Our population ia increasing, our land is becoming more cleared. Our resources are not developed. Our en ergy, thouirh paralyzed, is not fully destroyed. If we had ft currency, and wise an stable laws Dy which we were permitted to use it we could extri cate ourselves from debt public and private, in a lew yean. The reople are all on tneir oars, watching every breeze from our halls, to convey Uie intelligence of the restoration of tlieir currency, wrested from them hy tho ruthless hand of party strife. Oh, it is truly piteous, to behold us, amidst such anxiety, contending about amending Latham's Bill admitted to he ft humbug. It ia said that a currency cannot restore the prices of property. Give us one, and six months will satisfy the most sceptical mind. Its very first office would be to inspire confidence in seventeen hundred thousand souls, and at would awaken energy, enterprise and ambition, lid men would hunt Uie world for ft market and it would be found. Thoy would then cross Uie ocean. hen as they now are, they would not dare step over rivulet created by a thunder gust We could come n competition with the products of other countries. Yourown citizens could buy, and not wait for others from abrond to come among us. The interest on your currency would be $:IOO,000 which would beso much saved to your Mate, xourcitizens would market their products. Business would be brisk. Property would be changing hands. Infinitely more property would find it. way abroad. That is always the result of the means to do business with. We could tako advautuge of favorable changes in the u.arkcts abroad, and not have to wait until Uie demand was supplied by others. New business would spring up among us. Old business, that wo have It tor want ot means to carry it on, would rcvivo, It is ono or the laws or trade that a neceraary cur rency will increase the demand for the necessaries or lite, and particularly so in a country whoso resources ure not developed. Business men would come among us, and cngago in business or all kinds. With ft currency, you could repeal your odious stay and ap praisal lows, and permit men to collect and pay debts. Pennsylvania with whom we are intimutely connec ted and we may be said to be the same people a po litical mania haa prevailed there and destroyed her currency. If her currency was as sound as it had been for thiity years up to 18:15, alio would furnish a market for nearly all our products. Before entering upon Uio discussion of tho luw and the amendment you propose, 1 will spend a few moment, in giving my viow. ot a charter. A charter is ft right conferred by law upon one or more personB fortheexer- ciso of some privilege, or performance of some busi ness in their acquired or corporate capacity, x here must be corporule elements enough in its created capacity to preserve its existence or it is of no public utility. As in tho instance of a Bonk, if you do not require among thcircreated responsibilities such provisions n. will insure the redemption of their bills as called for, the charter is useless for the purposes for which it wus enacted. When 1 come to another brunch or Uio aubjert, I will further attempt to illus trate it 'flic Senotor from Richlond remarks that tho ques tion before us is, shall wo incorporate the old Honks, or moke new ones ? And he answers tho quesUon hy saying, mako new ones if any. For, say. he, would you, if you were going to build ft house, take old materials, or buy now ones. I would answer him by saying, wo have no new materials, all nave been destroyed or taken off. If we had Uiem, no prudent man would dare to risk them in Uie building yuu propose to erect 1 here is but one way wo can do the iieoplo any good at this time upon this subject. and that is to continue Uie charters of Uie old Hanks with such restrictions as are necessary. But I re- gord this issue as banks or no Bunks. With all due deference to tho opinion of Senator, who differ with me, 1 cannot behove any thing can, or will bo none under your proposed amendment to Uie law. For I do not bcliavo it is any improvement of tho old. That has been in existence for one year. During that time not a single application to do business un der it It has been extensively discussed, and 1 be licvo by business men universally agreed to be im practicable. If men of your own party do not incor porate bonks under it, it is strong evidence sgainst it An oiler now to amend it shows your want of confidence in it. I will now take up Uio law and Uie amendment together, and 1 shall take the amend ment which ha. been adopted for the one under con. siderntion at the time I mado my remarks and which is now the law. The 1st section provides that all persons wishing to do business as bankers, shall comply with Uie provisions of this law. Tho 2d section, no company shall bo incorporated wiUiout being fonncd by petitioning tho Legislature tor an act of incorporation Kiting forth many Uiings in Uie petition. Ud section. Every such bonk shall have succession by its corporate name may suo and be sued, may purchase and hold reol estate enough to set Uie bonk in and no more, and such personal prop. nrty a. may bo necessary to carry on business; mny elect a board of Directors and President to keep an offico or discount and deposite at Uie place or its locatiun and at no other, and may issue bills or bank notes for circulation, payable to bearer; and the bank not to commence business until all its capital is paid in in gold or silver, and the capital to be examined hy the Commissioners nnd certified lo by the Register. The first amendment directs who sliall be eligible as Directors and that two-thirds of the Director! shall bo necessary for tho transaction or business, nnd renewal of notes, and no loon shall be made for more than aix months and no obligation shall be discounted or purchased by the hank that ha. more than six months to run. Every Director shall be presumed to possess such knowledgo of Uio nlfoirs of Uie hank of which ho is ft Director, &s to enable him to judge wheUier any act done or performed, or omit ted is a violation ot tin. act or ot the act tn which tins is an amendment. It shall not he lawful for tho bank to declare any dividenda in case the capital stock of such bank shall be impaired or reduced by losso. or bad debts until .aid capital nock be fully restored and tho bnnk violating this provision shall be held to bo insolvent, and Uie Commissioners shall forthwith proceed to close it up. This last provision leaves it in the power of Uie Bank Commissioners to examine tho alfairs of a bank and if they think the capital stock of Uie bank impaired by bad debts, or in any other way to close the bonk and declare it insolvent Tho late or tho bank is left to the judg ment wnun or caprice ot ft single man. tlow easy it is to get up ft cry against n bank and close its con cerns. INo man over ought to ho vested with such discretion. Requiring Uie Directors to possess such a knowlcdgu or the alfairs or Uio bank, as to judge whether any act done or omitted is a violation of the charter. And then make them liable if they should misjudge individually, no prudent man will ever placo himself in that attitude. It ia out of tho question to require all the capitol to be poid in gold and silver before they begin busi ness. Make a provision that when ft given Amount is poid in, they may issue in proportion to what is piid, the saino provisions as ftra contained in Uio Circloville and Clinton Bank to which 1 havo relerred you. If the bank has t capital that will dn comimi mty any good, the amount cannot bo raised snd it would bo dead capital for ft long timo before loons would bo mnde. '1 here are some provision, contained in Uie 7tli section which are improvement, upon somo or all tho old charters. In the lthrlof Uiat section, Uio banks are prohibited in these words uimr shall any bank employ ftny broker lo transact any business or bo concerned either directly or indirectly in any way whatever with any broker, or in any brokerage business." To deny to hanks the privilego nf employing such men lo do thoir business as they please, and not to doal at all with ft certain class, is a most extraordinary provision. A man must bo eager indeed for banking who will submit to such humiliating restrictions, but if they do it or violate any of Uie provisions contained in any of the proceeding sections, they shall be fined in any sum not exceeding $5,000 nor less thon $1,000 and be imprisoned in Uie dungeon ot Uie jail and led on broad and water, not,cxcoeding six months nor less Uian one mouth. Tins is i most degrading provision to be under Uie necessity of inserting lo prevent the violution ot such restrictions as 1 have described, it mu't make an houost man blush when ho looks st the charter. But the Legislature did not expect an linnest man would bank under it or they would never have mndo such a loothsomo inference. U section. No officer, of Uie bank shall discount paper that directors hove refused. 10th section provide, if on one concerned in Uie bank .hall ouibetzlo any of the property, or commit any breath of trust with intent to convert tho same to their own uso, Uiey aholl be imprisoned in Uie Penitontiary. An excellent provision for regno, and also to prevent honest men from being led into temptation. II til section. .No DonK shall at any time owo, except for deposits more than one and a hall time Uie amount ol Its copitai paid in and remaining therein as slock and tho loan, and discounts of Uie bank shall not at any time exceed twice Uie -amount of Uio capitol stock paid in, and all loan, over that shall bo void and the director, con- dends. 13th section the banks shall not have in circulation at any one time an ftmount of Uieir bills greater Uian Uie amount of their capital paid in, and shall at all time, keep in Uie vaults of Uie bank one dollar in coin for every three of paper in circulaUon. in looKing over me issues oi ine dboks tor uie last eight years, even under Uieir old charters which permitted Uiem to issue three times the amount of their capital, Uioy very seldom had in circulation more Uian Uiree Umea the amount of coin nn hand. I suppose if new banks were now to be organized it would not be an insuperable objecUon that Uiey were restricted to issuing only throe limes the amountof specie and not to owe oyer once and a half the amount of their capital if Uie charters in other respects were unobjectionable. Under these provisions Uiey are required to discount on their coin, and also on depoaits, if they should come up to double the amount of capital, as i. provided in the 11th section, for they are not permitted to have of Uieir own bill, out at any one time, more than Uie amount of their capital. The 14th, 15th and Kith aection provides for having a register appointed, who shall register all bills put in circulation, and if he doc. not do it he shall go to Uie Penitentiary. 17th aection the bank shall be taxed to pay the Bank Commissioner and Register, and their expenses; and by 20th sec, a State tax of one half per cent, and as much more as the Legislature shall impose from time to time. These provisions for taxation in the discretion or the Legislature, are absolutely fatal in Uio minds of prudent and discreet men. For ir the Legislature in future are lo have the same viow of ditcrtlion towards bank. a. they have had from 1830 until now, Uie banks would bo mere play things in their hands, a. much so as was Samson in Uie hands of Uie Philistines after he was seduced and had lost his eyes. By Uie amendment the 18th and HHh sections are repealed and re-enacted again. The 21st and 22d sections arc Uie only ones repealed, that were of any consequence. 23d section-stock may be transferred in such manner as a majority of stockholders may direct or the law provides. 24th section the Recorders of the county shall record Uie names of stockholders, and the amount of atock, and the banks to post up the name, of stockholders. Tho 25Ui section providing for personal liability is repealed and re-enacted again in Uie amendment in ft worse shape. It is claimed by Uie Senator from Richland, and also by him from Licking, that the Scotch Hanks, nnd also Uie Banks in North Carolina, Maine, Rhode Island, and Massachusetts, have adopted this principle. I will consider it first upon authority, and then point out the objections to it upon principle and utility. There are but Uiree Banks in Scotland that are chartered by the Government Tho oUiera sre all senting to it shall bo liable in individual capacity. ik. i.hi. niu. ii.,:.. j:..l. . 11, AHH .Oltlvil N iuiw iii gmMUi M.tl- private joint stock companies, mere partnerships. The Bank of Scotland was the first and chartered in Hi! 15, and they gave it Uie exclusive privilege to Bank in Scotland lor twenty-one years ; Uie caintal itock was exempt from all the burdens ol the uov- eminent and the responsibility of the stockholder. wa. limited to the amount ot Uieir .hares, ihe Royal Bank of Scotland wa. incorporated in 1727 upon tho same principles, and in 1740 Uie British Linen Company waa incorporated with the same provisions. All the others are mere private associations self constituted ; they choose their own partners, and are in a wealthy, compact community, tjur uahk. bear no analogy to those. Our. .re subscription Banks, no power to chooso who shall or shall not be stockholders. We hove to hunt tho capital where wo can get it at home or abroad. If our people had the means, and were permitted by law to fonn such Banks, there would be no obicction to being person ally liable; and it is a principle of associations like Uiose that they are so liable. These private associations in Scotland are very popular and useful, and said to be almost a perlcct model ot flanking; but the people of Ohio are denied a public currency, and also nil private individuals are denied the privi. leo-e of Bankinir. - in North Carolina, in lw4,the llnnx nt newborn wns incorporated with a capital of $.100,000, one- fourth of the stock to be paid in gold and silver, or us ciuieu4cm, ni uie tune uie iuigi t laavu, aim uicn it may go into business ; it may issue two to one ovor the sUick ; and shall not deal in land or other things not connected with Banking; it shall pay an nually a tax of twenty-five cent, on each share, and the shores are $100 each, and to make ft report once ft year tn the Legislature ; and in case of insolvency of the Bonk, or ullimato inability to poy.tho individual stockholders shall be liable to Uie creditors in sums double Uie amount or stock by them held. I am referred to such ft charter as a precedent for the provision contained in the proposed amendment ma king individuals liable; which 1 will soon explain. The Khode island Statute simply provides thst the Banks shall not owe more Uian the amount of stock paid; and if they do, the Directors under whose administration ii nnppcncd snail oe naoie in their privato capacity. This prevision i. no more than somo of our old Statute, contain. The Statute of Maine provide, that Uie Bank, .hall not at any nne time, owe to exceed twice tho amount or capital, exclusive of deposits, nor shall there be due to the Hank at ono tune more than double the capital paid in If these provisions are violated, Uie directors under whom it happened shall be liable lor tho excess in their private capacity ; and it any loss or deficiency shall arise out of any official mismanagement of the directors, such directors shall be lia ble in their private capacity to pay, and it the direc tors are not able, Uie stockholders shnll pay to Uie amount of the stock then owned, and Uie liability shall not continue beyond one year alter the stock holder shall have sold his stock, and at Uie cxpira tion of Uie charters, the stockholders shall be liable to redeem the bills in proportion to Uie stork that they then hold, but the liability shall only continue for two yean. These provisions bear no analogy to these you propose. The Statute or Massachusetts provides that one half or the capital shall be paid in before its Hanks go into business. They shall not owe more Uian double the amount ot slock. It the directors Bholl mismanngo in Uicir official capacity, they are liable, and at the expiration of the charter, the stockholders are liable as they are in Maine. These are all the authorities that are relied on tn sustain the individusl liability, and it I. not sustain ed in Uie least and 1 am bold to say it ennnot be by any authority and example extant But it is tho in vention or a political disease that has swept over ynur Slato. Your proposition is Uiat the stockholders shall be severally liable in their individual and private capacity lor any claim agains: Uie Hanks, ex ccpt when Uiey contract dillcrently in relation lo de posits, and Uie liability snail oe imposed as loilowsi The Receiver, who take charge of Uie Bank, shall, within ten days, make out ft statement of the active assets ot the Bonk, excluding doubtful debts, ana all that have ovor ninety dnys to run, and all real prop. erty and if in the opinion of tho Receivers, tho assets when reduced lo cash will not be .ufticiont to redeem tho liabilities, it .hall be the duty of the Receiver, immediately to collect Uie residue from the Directors by Scire Facia, in Uio name of Uie Stato of Ohio, against the Directors in tho State, calling upon them to show cause why execution shall not is suo against Uiem for tho amount the Receivers see tit to fix, and Uie execution may be ordered at Uie appearance term. And ir Uie execution i returned unsatisfied, thoy shall immediately procoed to collect it from tho Stockholders in Uie samo way and manner. Any person who may havo any of Uie bill, ol tho Bank and ahall deuiand .pecio and It is not paid, may sue Uio Hank, snd II they cannot collect it may proceed against uireciori anu btocaiioiden aa ia above provided. And the writ ahall not ftbato for non-joinder of the Directors or Stockholders, and if too many ho sued, no matter, the writ is good, or if the Directore or alockholdora nvo out ot the Stale, they may bo served by notice, or any other way the Court ahall see fit And the Stato of Ohio shall have a lien on all tho real property of tho Directors and Stockholders ol the Hank tor the boneht ol Uie cred itors of Uie Bonk, from Uie dato of Uie application of Bank Commissioners for the appointment ot Keceiv era. I will now ask, will any man enter into an obligation ol'this character, and to be forfeited and en forced in thia manner, where he is hemmed in and fettered up in every shape and form thai tho ingenuity of man can devise, without Uiis ? If he will, ho must be ft lover of this new faugled Democracy. By it thore is a lien on all his real proporty from tho time ft Bank Commissioner .hall take it into h head that the Bank must be closed, and it cannot be discharged until all the bills are redeemed. From tho time any war shall commenco upon Uie Bonk, ten dnys need not expire before thcie is an execution aerainst vour private property. 1 here is not a 1'olcn- tate in the Old World that has more perfect power ovor his subjects, Uian the Bank Commissioners have ovor your property. By it vou can reach men in lor eign States, and obtain judgment against them by inserting ft notice in ft county newsiapor. 1 he i-oui' uiissioner. are not restricted to any forms of law, 1 hey ovorrido all in their fury to overtako the Hank. or. There may be property enough in the liotiK pny all, yet it is too tnnlv to satiate tin. clomorer against Hanks. 1 ou cannot lino ft liana ciiortcr in Christendom so strong, so guarded as is this, without the confiscntion of one's private property. You might guard it with an armed force, and yet no new security would be gained. Will men when entering into contracts, yield every Uiing they havo to gratify in idle whim, even ir Uiora wai no oUier objecUon. Some of the objecUons to becoming personally liable are the following. The Banking companies are fonn ed by subscription as I before said. The Stockhold ers have no power to select such as they pleam to take stock. The contract in part is of ft public na- Their powers and liabiliUes are created br law. They are artificial. The creator has power to impose terms, and the created, if he enters into Uiem, cannot release himself at pleasure, as can private individuals. K he become, weary or Uie bu.ines, no matter. Ho cannot get out or it He ha pledged bis corporate property, and rule, are prescribed to conduct and take care of it He owns but a small part of Uie atock, and to hazard all he ha for the chance of making four per cent, (and I firmly believe no more can oe mane irom year lo year j no man wno has ordinary cauUon will do it It must be remembered if a man own. but one hundred dollar in stock and the Bank has trouble, he may have swept from him all he has, for he is liable to redeem all Uie bills, and Uiat liability may overtake him suddenly, for pub lic sentiment is as freakish as the cloud, of summer. Stockholder, are constantly changing. Children and married women are becuming owners by death and testament and men will not submit to have all their property hampered and holden for all the ultimate ontingencies that may not happen during Uieir lite may happen in six months, 1 know how men reason upon this subiect I now their political attachment to it They say I am liable for the note. I contract why should not the rich bankers be liable for their notes. When E give my notes, lot Uiem go where Uiey will, I mi to redeem them. But are you litre Uie case, are paral lel? Is there any rational analogy between them? ou buy an articlo of property, and give your note for it the business is entirely within your control. But the case of partnership is more like banks ; but see the plain dilference from what I have laid, and what follow.. In bank. Uie buainesa ii controlled and governed by votes, and Uie majority rule. Two Uiirda of Uie directors have a right to discount psper and do any other business. You are ft director, and you are opposed to the majority, but you cannot con trol uiem ; and they do business in a way that the bank may have trouble. Will you run Uie risk or )o- ing an you nave t w in you submit your property such unlimited power as is given by Una amend ment ? There is not ft fanner iu the country, no matter how much spare means he ha., no matter hat his politic, are, if be will study Uu law and the amendments, and reflect upon the feeling gainst bank., that would dare take atock in it Not because the charter i. not strong enough, but because of Uie extraordinary manner of reaching indi- iduai property. I have no objection to make mdi-duals liablo if they commit fraud, they ought to be liuble for it in all forms, and that wo. the extent of Uie law. in the different Slate, to which I have referred, except when the charter expires by it limitation. But every one to which 1 referred contain entirely dilferent and more liberal provision. Uian does this. But sir, personal responsibility is ot no utility to community. When ft bank become, di.-crcdited, if it. ullimato means are abundant, and even its stock worth its face, yet its bill, will be discredited, and irem'the tact they cannot be instantly redeemed. But put the case in a stronger light, and soy il ha no means but unlimited personal responsibility, and your Commissioners go to work, and then cornea your stay-laws and your appraisal law, and no n.oney to buy property. The holders of the bills cannot delay, and pay the expenses of suing, and will sell Uie bills at a discount or twenty-live cents. Hence it is, Uiat I said a charter must con-lain it. corporate principles of life, or it is good for nothing. Make a charter liko this. The bank shall redeem it bills in gold and silver it shall not owa more Uian once and a half the capital stock paid in, exclusive of deposit it shall not have more due to it at any one time than twice the amount of capital. and I believe Uiey would be willing to have thoir issues confined to three times the specie in the vault, it snail not deal in Dunnes, not connected with banking, restrict it to amount of loans to one individual, or to officer, of the bank to make quarterly report, to some responsible tribunal have the affair, inspected by some ollicers in the county twice ft year, and other incidental provision, soch as may be necessary. i he 2lith section provides who shall be stockhold ers. The 27th sec. makes the officers liable if they mismanage: and if the bank becomes insolvent it shall be evidence of mismanagement Nearly eve ry section in tne law contains some most extraordinary nroviflions. The 28th is renealed. a. ia also this 2.1th. The 30th prohibits issuing bill, bills between $5 and $10, or $10 and $20, or between $20 and $50, or between $50 and $ 100. Notes leu Uian fire dollars are prohibited. This is an inconvenience, and productive of no good except as ft step to hard money, and the whole Taw and Uie amendment look only to that object The Virginia Legislature this year repealed the law prohibiting Uie issuing of notes less man nve dollars, rne 31 sec. I repealed. There is in Uie lOOi sec. of the amendment a pro vision that any atockholders may require Uie Commissioners to examine the atfaira of the bank, and if Uiey find one fifth of Uie stock sunk by bad management, they ahall at once close it up. How dangerous is such ft power to the prosperity of ft bank. iiuw oiieu ib it mat uiincuiucs arise oeiween stoca-holdors,and the Commissioners might have Uieir ears poisoned with Uiese complaint, and with these tbelings giving them diBcreuon to judge of tho whole business of ft bank.and immediately closo it I repeat is fatal to the prosperity of Uie institution. By the amendment you propose to incorporate live new bank under Uii law. Not one of these bank have asked to be incorporated under it, but all have refused, and asked you to strike out their names, but ou refuse, except in one instance. 1 do not know nit some banks can be found to do business under the law, but I do not believe it There are five banks now doing business, Uiat you bring under Uu. law one year hence. Why not do it now, if Uie law is good one ? hi for effect These banks will now close Uicir business. A largo amount of their stock ia owned abroad, and they will not and cannot submit to these rules, and thereby haxard all. Reserving a right to alter, or amend, or suspend a bank charter at Uie discretion of the Legislature, is fatal to it prosperity. See the exercise of it in Uie case of those five banks, as a practical illustration of Uie mle. A Bank cannot be prosperous to Uie public, or to itself, if it. liabilities are subject to be changed ft-nm year to year. If you pas. Uiis bill and do nothing more, I have often aaid, and now my, it is a hard money uiumph. Will you, I ask with unfeigned sincerity, abandon the policy of your State from her early history, under which, by the intelligence, industry, and enterprise of her citizens, she has advanced with unexampled prosperity to Uie period of her embarrassment produced, not by banks, but in ft great measure by the indiscriminate war of extermination waged against them? Will you, because some of them have been unfortunate, abandon Uie others, and with Uiem the system. Will you say Uiat because one man or one nation haa fallen, Uiat there ahall never exist anoUier. Just aa absurd is your po licy. If you go nn with Uiis course what is the consequence. All our currency will come from abroad. The interest on that autn will be a dead loss to the poople ol this Bute of frem two to four hundred thousand dollars, and the character of the currency is t matter that Uie great mass of Uie people know nothing of, and feel unsafe with it But do business they will. If you take frem them their currency, you cannot take from them their spirit and their energy. They will arise in their majesty and examine Uie cause or this mighty change in Uie currency, and ir you have erred, Uiey alone will correct it ThurWar, Perrr9J, 1843. IN SENATE. PftiHtrnt. dr.. preitnted. Ilv Mr. Stanton, from riliiM.a of Locan county, for a Hank charter, wilh ;m),0!I0 rapilal. nn pni.i in, miu wnn ten, 10 uMn inrns nottsn in paper 10 Quoin perte, Ar., under Ihe law of tail winter, and any aHdilioaal rrsinrlioatMhirh may be ensrled sl the present srtaioni um Itank 10 he located at Hrllrfonlaine, Logan roiinlv referred to Mr. Nlnnlis). Hy Mr. Parker, the pmeordinsa' of a steel. ins; of fitness of l.irkinf rmmly. on the mihjertor the asMimp. Inn of tllale debts hy Ihe (limeral timemment. Ilv Mr. Waltoa, Irotn rtlitena of Waihinrlon, Uuempry eounty, lor nn arl supplementary lo Ihe chatter of said town. Hy Mr. Ford, fnnn ritiiem ol' rieveland, for die repeal of the eily charter, fly Mr. Npalon, ftom rtlitena of Tnitnhiill emtnty, for lite repeal of all law. requiring process lo be served thirty dHva belore Iho term of Court i also, fnimeertsia f intent id tntd county, for aulhnniy to tell certain land. Hy Mr. Karl? lev, fr.uu ritiKimt ol Hii-hlaiul comity, Ibr a new road frost Mimslirld to lli-llvillo, in taul county t also, a mestonaj ia favor of Ihe completion of Ihe WalhiNtdiiie Canal. Mr. Aien, from the eomnullee oa l orpnr.lietw, reporlisl hark Ihe hill lo incorporate the tttiio Ktre Rnfine and Hose Company of Ihe town of r'ullon l and Ihe bill to ineornprats the ltiiloMn Fire Kngiue and Hoes Company; and they were ordered 10 a third reading. Mr. Kniiiklin, from Uie enniniitiee on Pnblie Intlituliont, reported bark the resolution lor Ihe sdmitsion of Mamuel t'oe-lege, an unnaiuraliied loreigner, inla lae Lunatsa Aiyluai, whist it was adopted. Mr. Ncwinii, Irom amalority of tht committee on the CStr- rencv. reported hark the hill to revive ami ame id the arl ean lied "an arl lo incorporate Ihe tlorkholtleri of the wet a Heteive tltiik," patted March 10, ISIS, reeoatieamLax lis paage. 1'liis hill underwent foosiderable diiciMtlon. sreniri. Ford ami Noaion supporting il, ami Meurt. VY alio., ratter, l.ehin, nnd Hartley, upiosing il. In order thai the public mty have an opiHxtiiuiu of acemg the rharan of ll.i, bill, rtjieUd as Ihe stiitenv. rerlwnennrotieof the heal Hanks thai ever on' I itled in lint Mlate, it is uueruW keie al HMgut :

TATE JOTJRNA Jj. VOLUME XXXIII. COLUMBUS, WEDNESDAY, MARCH 1, 1843. NUMBER 27. WEEKLY 0 0 I'UUUSUKU EVEKV WKUNErtUAY, BV ClltBLia gCOTTi Office sorner of High and Town '". Bulll'' Building. TERMS; .... . TMRll! Dol.l.iH f EB iiiul, whiehmay bodiicharged by lh?oynKnl of Two Dollarl and Fifty Cent. .J. .dvw.ce, it the oliiee. fi m Dnily Ohio Slate Journal per annum jr uu Tri-YVeekly Ohio Slate Journal perenmim.... uu All letlora ou badness of the office or containing temillan. ee. n u.lb. P V- ltrl''''""' P""i bJ low Inremit monoy lo pay tub.criplion.lo newtpapert. The Banks and the Currency. MPEECII OP mn. RKWTON, In iha Senate. January 30, 1843, on llic bill lo regulate Banking in Ohio Mr. Lwtos ad.lro.Kd tho Scale a. lul-Iowa : MR. Spcakeb-T regret that the discussion or Uu. important subject should have fallen upon one no little acquainted with the fundamental principles upon which it is baaed, and thoir practical application to the business of life. The laws of trade have created the necessity for a currency. In what it shall command how regulated, haa agitated many and even most of the nations of the world, in different periods of their political history. Amidst the van-ous commercial and political revolutions incident to all governments, that agitation has fallen upon the people of Ohio, at a most unpropitious period, when we are laboring under the most severe pecuniary embarrassment and pol"'"1 animosity. And the most casunl observor cannot but discover that the tendency of that agitation has arrived at this point-. -u.ii i i,..,o currency of coin or papers the friends and advocates of a currency of coin, seem to vield to the glunng necessity uio., iut u. u..., ii .' e . ,,i,r rbnracter. and irovorned by ex traordinary laws, and guarded by unusual and weigh- '.. ..... ln4 a nlivn thn aitMla Ihpu ty responsibilities, may mi m . ..---, hive created and entailed upon community. Lxist, air, as does the felon, until a convenient tune arrives 10 destroy thorn. On the other hand, tho triends and advocates of a paper currency, based upon specie, .... ,1,0. ii b,,a fr its foundation and authentici- ... .i.. ,.l,,,l wisdom and experience of many nations, and by far the most wealthy and commcr- .i... it ,fnnna nil tho various operations of commerce, manufacture! nd agriculture with more ..:m ...A . much stability as coin. That com .. lj ......nnin. the combined results of wis. doin and experience, are as strong, powerful and stable B! tho bowols of the oarth, moulded into coin. Which of these thooriea, Mr. Spookor, have the itrongest claim for adoption and the patronage and protection of the government to sustain them, would .coin lo be the ultimate, though not the immediate: .: kc, n. What ariruments, sir, do the friends of a currency of coin urge to you, and thro' you to the country, In favor of ns adoption ? i hey urge that gold and silver, ior auoui years, has furnished tho only true standard of value u a circulating medium, and that the wealth of the world is not increased by tho circulation of paper as money. It is true that specie, among many nations, has been and is still regarded as the basis upon which to form a medium of exchange that shall fur-nish a measure .if value for all the various avocations pursued and commodities produced by man. But ciu ti.nt it ta tho onlv safe one unit can be adopted and used in all tho diversified pursuits of c ...... i.f hnainpaa nnd nrrll. monkind in me perioniiai..- . mulalion of wcoith ? Tlicro is not in nature any permanent standard of value. There is no cotnmodi-IV, the relotivo value of which, compared with all others, is not subject to great change and fluctuation. What is wealth, in it! most general and com- i. .;., ..,,. s It is the combination of integri ty skill and intelligence; and the accumulation of " l .: . .l.n.n ntlrihlltfta. Tn aiV property is out muiueiiv . - - - -j that a well regulated paper currency adds nothing to the wealth of a nation, is a proposition so narrow and confined as to produce no conviction upon tho j r :.. ...ih hut carries its own fallacy in its 1II1IIU Ul IU1 .U.K., -, own terms. No inanimate commodity is valuable, except what is made so by arbitrary rules, compact, and agreements, or by the bestowal of labor, or per- formanco of skill, except mat wiucn grow. neous from the earth and furnishes food for man and beast Paper is aaid to be nothing hut tho representative of money. 1 cannot so regard it- It repre-. ents trade and comtnorce in all its vast variety You have made it money as much as any other .ubstance yon call such. Why is gold and liver money? Is it natural name given for it? It will not be io laid. Then it has acquired the name by use and for utility, so has paper. When a paper currency is regulated by trade, or based upon spe cie, ana governea oy wwo ..... .....-., .-- will command a specie dollar at all limes, it is just as valuable as a dollar in coin, and is capable of ; performing a far greater .mount of business with less expense. Has paper any alloy ? so has gold and silver: one-eleventh part or it ii sucIl Another argument urged against a paper currency is if we have it, wo lhall m ike coin into spoons and other things. This is an argument I cannot stop to consider but for a moment. Waa gold and silver formed in tho earth by the great author of all things for monoy alone, or for all the various purposes that the ingenuity and enlcrpriso of her inhabitants should devise for tho cumulation of wealth, and enjoymont Hold and silver from tho earliest times have been used for articles of ornament and luxury. Aa well, and with Iho same force might you say that iron should alonobo mado into plough-shares or pre-ning hooks, or lead into tho plummet for the school-b y Look about you and seo the various new uses to which iron has been applied within a few years past. By the use of paper it is said the mines bo-co.no leas valuable. If there is any with in this ar-giiment, it must ariso from the fact that by the uso of paper, tho demand for coin is lessened, llus there ever been a time in tho history of this country, in which labor might not ho as successfully employ-cd in the manufacture of gold and silver, as if wo had not a paper dollar in circulation? I .ay Here has not. Thorn has, at all tiroes been a full employment for the labor of Iho country fur more prohtohly than in the manufacture of gold "ni "'""i not bocauso there uu no demand fur it, but because or the ex-r n.niiimr it. It is ono uf the dearest coin- inoditic. producud by tho hand or man. We have no silver mines in the United States, and our gold mines cannot be worked at a profit of over aoventy-tlvo cents a day to the owner. It is universally admitted Ihot tho gold mines of the country are nothing like as valuable as our alono coal. In Ohio for the laat three years por has boon decreasing rapidly, and your products increasing to that tho exports amount to about twenty millions. W hy I. it that .,. h .. .lm decreased ? Alain: it is said that paper docs not incrcaao tho circulation. This argument ii based upon tho hypothesis that it is worthless, and is calculated to drivo coin out uf the country, or hoard it up. Coin in this country is lino all other articles of property-it conatantly, to a greater or less extent, changing it! ligation. II you take it abroad to buy property, you bring its equivalent in return. As yuu oxport your property, you It is said paper will cause coin to be hoarded up. It ia liili. ull to sco how it will perforin the double office of driving olf, and hoarding up. There is, Bgrco, a strong infatuation pervading the public mind as to tho value and utility of gold and silver. But I cannot agree that the miserly disposition is increased by the use of papor but I believe it u decreased. Thore is, in tho circulation or papor, in all it. vari-etv, omething commercial, enterprising and exten-ivo in its operations, arising from iu facility and capacity lo perform a great amount of business, and iU tendency is to .timiilato lo industry and business in all iu channels, and as this increase, tho dispoai. lion to hoard diminishes. It i. said by the Senator from Richland, that a currency of coin will be larger than th it of paper. It is difficult to seo by what course of reasoning tho Senator brings his mind to that conclusion. Tho amount of currency required in any cuuntry i. ascertained more from tho amount of business done, than from tho number or inhabitant. In Prance, the oroatest amount or their cur. roncy is coin j they have a population or ;5 million, capital in monoy or 570 millions, and they only export 1 10 millions. A largo unioiint of tho cuin of thn country is hoarded .lid not used aa currency. Their country is trnill, their population dense, governed by tho samo laws, their property unequally di-vidod. The first class wealthy and indoolnt, and Iho lecond, poor and wretched. The first class too much money tn dio with, .nd the second too little to live with. Thov do very littlo trading except in the ne-cess.ric. of life. In all countries whore coin is the currency, they havo a grestor proportion or their capital in money, than in those countries where papor is used, but it is inactive. It ia bare capital, and not put to any beneficial use. You have a proor or this in Knirlaml and America. In England they have a population or 'AOOO.WKl, and only currency or 4:15,000,00(1, and export ;HT,01KI,UIIU. i ncir currency is nearly all paper. They are th. most wealthy ind powerful nation on cartli, .nd no doubt havo a greater currency than France. In America we hate ' population of IB millions, t currency of 1H millions, (only 30 of it is coin out of bank,) and an ex-mit of ia millions. The Senator assert that a currency of paper corrupts tin morals of tho people, and place, tho power in the hands of a few. This is one of the new popular theories or the day, but ilnout precedent or example in tne nisiory oi nations. Are tho moralsof this country more impure and corrupt than in France, Russia and Cuba ? Has not the Senator too much pride of country to believe that ? Compare the morals of England and Franco, and does he there find the truth of the assertion ? Is Cuba, to which the Senator refers with so much seir satisfaction, a proud example to prove the moral, intellectual and physical condition of 1 country that haa a currency ot coin r In the hard money countries of Italy, Sicily, Por-tuiral. and Spain, tho condition of the poorer classes, and their morals, i. the most wretched. In Italy, J many hundred thousand are actual beggars. In Havana, an exclusively hard money country, the morals are notoriously bad ; and the great mosses sre most wreicneoiy poor, i no same is tne coae in uunuvcr, Hesse, and most of the smaller Principalities throughout Germany. So i. it in Denmark, Sweden, and Norway also hard monoy countrios largo numbers ot Uicir inhabitant, are oeggars. in Hanover or Saxonv. with the same currency, the situa tion of the people will not compare with Holland, Austria, 1'russio, and Sweden, where they havo paper money. Austria has a National Bank : Prussia ha. Treasury Note., and a Bank or Discount and Deposit. There are fewer immigrants from Austria and Prussia than any part of the continent. Money is more or less powerful in all countries, and under all circumstances. It commands influence, exerts pow er, performs and facilitates business in all it. vast variety, dcvelopc. the resource, of the earth, unfolds the energies of tho mind, awakenB genius and enterprise, and extonds intercourse. To say that if it exists in the form of Bank paper it corrupts the morals more than if it was in coin, is a proposition that may suit the prejudice of somo, but can never satisfy the judgment of any. The people in this country have tho power, and when they delegate it, they do it to promote their own interest and convenience. The proporty or the country is more equally divided among the people than in any other nation, and being so, it becomes necessary in order to carry on any considerable amount or business, to form compacts and associations, by reason of which their capital may be united, and thereby enabled to enrry on a largeramounlof business. How could the business of this country be done by a currency of coin ? It would be impossible. Tho Senator from Gallia, in his argument, has gone extensively into this part of the subject, and I will make but a passing remark. In tho first place, we should havo to purchase tho coin, ir we wish to use it abroad, it would cost rrom eight to nine per cent to transport it. An immenso amount of labor and caro would be required in transmitting it from place to placo in all the various avo cations in which we are engaged. But this question was settled in our early history, and indeed it may bo said wo brought the principles with us when we emigrntcd to this country. True, in the early his tory oi our country, some eminent men doubled as to iho expediency of adopting a pnper currency ; and I am referred to Washington and Jefferson, but they yielded their doubts, and most willingly united nil their powers and energies in establishing Bunks, tho mils oi which furnished a currency that raised us from poverty to wealth and power, and justly became the pride of our country, and even of nations ahroad. Would to (iod wo had at the present day, hard money men of the same calibre. Stability of purpose is the great axle upon which tho prosperity of nations aa well as individuals depend. Tlieso early institutions outlived their patrons, nnd if the ever varying political and party strifes of the duy had not placed upon them its iron grasp, would have continued, and with them the prosperity of Iho country. We find os early as 7(i(j, when Dr. Franklin was inquired of by the British Parliament as to the feeling or America towards tho Mother Country, ho informed thnt body that she complained because not permitted to make Banks. In December, 17ril, Congress incorporated tho Bank of North America to aid in discharging tho debts of the Revolutionary War, nnd it performed all the function, for which it wa created. In 11)1 tho United Slates Bank was incorporated and continued until lrJll, during which period no Nation was more flourishing and prosperous; and from that tn IHIti, what was the history of the country ! The Government was destituto of a currency, to supply which it issued Treasury Notes, and tho Secretary of tho Treasury issued a Circular saying that if the Banks in tho dilfercnt States would receive them, then tho bills of tho different Banks should bo received for the dues to the Government, which induced tho Banks to issue a largo amount of paper in this State, as well as in others. Withdraw. ing tho paper of that Bank, left a large vacuum to be supplied by the States, which had the s-imc effect aa the destruction or that 11 ink in leVKi, Uiougli not to so great an extent, as commerce and trade iiad not been so extensively developed. The War that existed during that period had increased the volue of the product, and diverted the public mind rrom tho ordinary pursuit, or business, and thereby lessened their ability to discharge thoir obligations. These causes, with others, led to tho difficulty that your Hanks experienced in IHPJ. Your Banks thit you then had, contributed largely to discharge tho bur den, of Ihe War ot If IV. Uhillicotho and Miami Kxportinir Company loaned to the Government near ly half a million, and they, together with Ihe four other, that then existed, loaned the State about fS0,-000 to discharge a direct tax imposed on her by Congress, by which the State saved 15 per cent, on tins sum. The first Bank incorporated in Ohio was the Mi ami Exporting Company on tho 15th of April, IrJIKt, with a capital of (100,000, five dollars in money on each share and 45 in produce to be paid in during that vear. No restrictions contained in the charter. The Bank or Marietta was incnrKrated in February, 1H0& The Bank or Chillicotho ir. tho same month and year. The stock or the fust was $500,000 and tne latter ?IOO,000. In February ISO!', the Bank of Nteubenville was incorporated Willi a capital of $ 100,-000. In February If I,', Hie Muskingum Bank was incorporated slock fIOO.OOO. In February 181'i the Western Reserve Bank capital 1100,000; ami in February lrji:!, the Fanners' and .Mechanics' Bank or Cincinnati 700.000 capital. These Bank, had a right to increase their capital to S.'OO.IKK), except the Chillicotho, and that to $500,000. These Bank, had no restriction, except they should not owe at any one time, exclusive or deposits, more than three limes the amount or their stock paid in. Nothing is said about paying their slocks or redeeming their bills in coin or siecic I believe the words are not used in these chorion. One provision contained in these charters is thai thn legislature had tho right to repeal or amend. There is ono express prevision contained in them that tho Courts should be liberal in its construction. These are the only llmks that you had until IHlli, when many more were chartered. Inthst yoar the United States B ink was again chartered and continued until IKki; and the history or Unit, during that period, in the performance of all the oltices for which it was enacted and the instrumentality it furnished as a medium of exchange at home and abroad, will bo undcr-itood and appreciated w hen party strife shall coaso to dulugc the land and drown the voice of reason. From that period, wild experiment, upon the currency, incoherent Ihnkiug in some instance., and a constant party warfare against all Hunks, has influenced the public mind, desiniyed the stability of your laws, anu depreciated mo vaiuo ot all mo property in your State ono fourth ; and, as ir lo bury u. all in one common grave, Hononiblo Senators upon this floor are delivering hard money speeches. Bank Commissioners making hard money reports, and member, hurling them on the wings of tho wind to a distressed and agitated people. Your potent party editor, gleaning as if from the regions of the dead, every hard money scrap, revamping and republishing it, hy which heated nioelinga are held and inflammatory resolutions passed and sent In you, air, as if containing the index of public feeling and senliment hy which you propose to relieve tho public distress under whose scorching influence all are withering, and amidst this whirlpool of confusion. Senators are bring ing in new flank bills and withdrawing old ones from day to day. What! Mr. Snooker, Senator, called upon to mako Banks, while they stand nvorthem with a two edged .word in each hand ready to cut oft tho Imad of the monsters aa soon as they have created mem r Permit me, Mr. Hp aknr, for a few moments to fol low the history of Ohio banking from IrllfL, before wo arrive at the immediate question before us, in or dor that we may see the apidication of your present laws upon tho old banks. In that year the Franklin Honk of Columbus, tho Iincaster Bank, Belmont Honk at St Clairsville, Commercial Hank or Lake brio, Mount Plensant and West Union were incnrpo rated. The capitalstock ofoach 100.000 and rlivi ded into shares of f 100 each; ono tenth of the shore, tn be paid when aubacribed, and Iho balance a the directors shall direct, and to go into operation aa soon as fliOO shares are subscribed ; also, at tht same time, Iho Lebanon Miami Banking Company, una oi Cincinnati, urnana Dinking Company, u. luinbiana Bank of New Lisbon, Fanners' Mechanics' and Manufacturers' Bank of Chillicotho, Gentian Hank or Wooster the stock of tho l-obonon M. B' Co. f iOO.OOO, the Bonk of Cincinnati (KKJ,000, Ur ban f.100,000, Columbiana 'W0,0O0, Fanners' Mo. chanics' and Manufacturers' Bank of Chillicothe $200,000, and the German B. of Wooster 200,000. All these Bonks had the power to increase the a-uiuunt of their stock to $500,000. The Slate of Ohio to have one share to every twenty-fivo, in all the Bonks. No provisions in their charters a. to the manner in which the slock shall be paid, or bills redeemed, no allusion to specie or coin, (further than that implied by law,) oxcept what follows. Tho stockholders not to impair the stock, and the Danks not to issue at any one time more than three times the amount or slock paid in, one half of which, at fensf, must be paid in iptcie ; if they violate those provisions directors to be individually liable. Not to take more than six por cent interest All these charters to continue until the first day of January, 104J, anu u extended an tne ennrtcra ot all the other Banks that had been incorporated before to thesamo timo, and the act of 1810 held out this encouragement if any of tlieso Banks will accept of charters and go into business they shall be exempt from any tax imposod by the laws of this State. No provisions for repealing or amending any of the charters, and the Supreme Court to decide whether the charters are violated in a quo warranto ; and "the act to be construed in all Courts and places benignly and favorable for the beneficial purpose, hereby intended." In 1817, the Farmers' and Mechanics' B. of Steu-benville, with a capitol or $500,000; also Commercial B. or Scioto, capitol $100,000; also Hamilton Bank, capital ftJOO.OOO; also Gallipolis, capital : 100,000; also Circloville Bonk, capital K300.000; also the Little Miami Canal Banking Company, capital $.'100,000 ; were incorporated under the law of Into, and subjected to Us provisions. In February, IH'JIf, the Geauga Bank was incorporated, capital $100,000. This Bonk for tho first restricted to issue. exclusive of deposits, not more than twice the amount of capital paid in. Ono tenth port ot capital to be paiu down in specie. In the samo year the Commercial Hank of Cincinnati was incorporated, coni- tol $500,000, and to continue until first of January, Ion. i he llank not to issue more than twice tho amount of stock paid, exclusive of deposits, This Bank, for the first, was required to redeem its bills in coin, or pay IS por cent interest In ISil tho Nor- woik Dank was incorporated with $100,000 capital, The bank was permitted to owe thrco times tho amount of the stock paid ia The Legislature, for the first time in a Bonk charter, reserved the right to repeal. In 10.1-1 number more hanks were incorporated, among which was the Bank of Wooster, with $100,000 stock. It was not permitted at any one time to owe more than three times the amount of stock paid in, cxclusivo ot deiosits, and was required to redeem its bills in coin, or pay twelve per cent Tho right to amend tho churter after iM'i was retained. In tho some year tho Honk of Mas-sillon wns incorporated with a capital of $200,000 and the charter to extend until the first day of June, lf55. Tho restrictions ore the same as those in the Wooster Honk. The right to repeal retained, if Honk refuses to pay coin. Tho samo year the Bank of Xenia wua incorporated with a capital of $100,000, the charter to extend until the hint day of May, 1850. This Bonk not to owo mora than twice tho amount of stock poid in, exclusive or deposits, and not to suspend the payment or it. bills in coin, under penalty or paying twelve percent After 1H40 the Legislature had a right to prohibit tho Hank from issuo- ing bills loss than five dollars; aller 1812 the right to repeal or alter was retained. The same yoar the Ihnk of New Lisbon was incorporated, to extend to 1850, with a capital of $100,000. The debts not to oxcecd twice the amount of capital paid in and required to pay coin for their bills. The right to ro-icol after 184'i was retained. Tho same year the Lo Favetto H. of Cincinnati was incorporated, capital $1,000,000, and extended to 1854. Tho restrictions the samo aa the last The Honks of Circloville, and also Clinton B. of Columbus were incnrH-roted tho same yeor. Tho first with a capital of $200,000; tho charter extending to 1855. Tho re striction and requirement a. to indebtedness and reuecming diiis in coin, tne somo as tuo last as soon a $50,000 was paid in, the Bonk was permitted lo go into business. Tho Clinton Bank with a capital of $:IOO,000 and the charter to extend to 1854; restrictions and requirement, tho same as tho last As onn as $ I .iO.OOO was paid in, tho Bonk permitted to go into business. The Life and Trust Company was incorporated the samo year with a capital of W,nuu,uuu, and was permitted to loan money (o ono half of the capital, and to double the amount of deposits, (to be secured by mortgngc.) This bonk had ngnt to issue paper until im.l. Since that time no now Bonks havo boon chartered. Many of these charters were liberal to the Bankers and not sufficiently guarded to protect the people tromtneovertraiimgoi me Banks, tme error wos that they wore permitted to owo three times tho amount it their stock paid in, exclusivo of their deposits, I think no Bonk should be permitted at any time to owe, exclusive of deposits, more than onco anil a half ol her cupilai paid. 1 he restrictions wore loose in relation tn paying in their stock and redeeming their notes. Tho charters vary very much. There is scarcely any two alike. Too much Bank capital wos created, and entirely too much at one tune, instead of keeping pace with tho improvements of the country and increasing with its wants and requirements. In a single year Irnin littcen to twenty Btnks were created. And by whom wos it done ? Hy tho people themselves through their Representatives. From 1818 to 1 82 1 many ol Ihe Banks fulled, arising in port, as I before remarked, Iroui tho embarrassment created by the War, and by tho destruction of the United Motes Honk, which induced a large issue. At the closo of tho War the country was ambition, lo return to business, which would be the means, with' out great caution, of a large circulation of money, coupled wnn tne tact mat a largo amount ol Monk capital had been created. These causos all conspir ing would bo calculated to produce revulsion. .Mast ol those Banks that suspended novo sooner or Inter redeemed Uicir bills, and tho total Ins. to cm-inunity from them i. nothing like what i. supposed. III ltd I, a largo number or Bonks were chartered, and in January 18115, there were 24 Bonks doing bu siness with a circulation of $5,221, 520, and in specie in the Bonks, $1,707,K15; and in Ictki, January 1st the circulation hod increased lo Ki,l.,lH I, and the siecio to $2,'.4.00ii, and Ihe 11 inks to III. Those Honks hod a capital ol ,:(;, 1 1, but not all paid in. The business of lcSWi will lung bo remembered. .Men had left their larms, Mechanics their shops, Law yers their offices, and Clergymen their desks, lo become rich in wild schemes of speculation. Tho circulation had increased Ihot year $1,454,125. Such experiments are hazardous, yea, fittat tn the prospcri ty or a country. A sud.len iucrcaso or the tiurrunry is a. hixnrdniis as a suuuen decrease, though Iho cl- fect not so immediate. Sudden prosierity is apt to make men giudy and tiiougmicss, while advursity mokes them sullen and unyielding. Up to this yoar tho public sentiment hod been decidedly in favor of Batiks in this ntatc, and had even gono loo lar and created too many, with loo loose restrict ions. In 1KI7 a party warfare began against them. That clou, of men who had ociora peon regarded as respectaulo and their business honorable, were vilified and libel ed aa common plunderers of the people. Tho wild exsriinents tn which I hove before alluded, the over-trailing of IcSkl, the wrty warf iro enkindled against them again pretluced a difficulty,and they were under the necessity of siHpeiiding, nlonly hero, but almost universally throughout tho whole country. In January 18:15, there were U2 Bonk, with capital of .'','.'l,,JKi, with a circulation ni J"-vr,'.i( I, and i pocie basis ol r; l,l,u,,tn. in iicccmbcr ol that yeor, there were IK1 Bonks in business w ith a capita of $ I l,:HI,iil8, and a circulation or $ti,22l,l:ki. Tin circulation thnt yeor was reduced over $2,000,000. In 18.18 tho Hanks began to do business again, and in April lrtd, they hod a circulolon of $8,157,171, and specie $J,iilt,814. From these statements it is claimed that Banks will expand and contract to such an extent as to destroy their utility. To settle this question with any degree of satialaction, look back to these various charters that I have described. See their previsions. You hod given thorn liboralones; authorised them to issuo a very lurge ainoimt, and had creatod a groat number in ono year. 1 he public sentiment was in their favor; tlicro waa a great demand for money. A greater amount of currency wa. created thon was necessary. Tho muney hail been token and applied in the purchase of lands. Bonks not being restricted, somo of them hsd left the legitimate business or Banking nd invested their money in stocks. When they were in litis situation a portitan warfare was waged against them ; the peo ple had borrowed their money and lelt tho ordinary pursuit! of agriculture and invested it in land, and could not pay them. They were then under the ab solute necessity ol collecting in their money a. tar could bo, in ordor lo prepare lor ihe threatening stonn that was thundering about and around them. And as they collected it in, Ihey Inoned it out again spar ingly. A circulation of $8,157,871 in 18.CI was not an extravagant issuo for the business wo were then doing. If the Banks had been guarded hy one half the previsions you now have, there would have been no danger of any loss. If any danger can arise from an over issue, it is from the fact Dial thore had been an error in the mode of creating the capital. There is no mora difficulty in regulating a Bank so as to make it useful to community, thin Uiure i in re gull. ting a clock or watch : but there is a much dansrer I of destroying their utility in rude hands as there is in destroying Uie utility ot either ot uiese instruments. If the country had been inflated with too great a currency of paper, who created it ? Who gave the power to inflict the evil ? Who was the iudge of the quantity required ? Who made the laws to regulate lis issuer 1 answer, tne Legislature itselt. J he same body that the people in 183 set to inquire a. to tho most judicious means to remedy that which they.upposed tobeoporalinginjuriously. What was the remedy adopted to cure the body ? Cut off Iho nend. I will now give the substance of the law of 1831), most of which is still in force. Three Bank Commissioners were appointed to visit Ihe Bonks once ft year, or as often a. they pleased, without giving any notice, and examine all the affairs of the Bank, inspect all their pipers, count all Uicir money, and swear the officers lo any statement they ask for. If the Commissioners find that the Bonks hove violated any of tho provisions of their charters, or other acts binding on tliein, they shall immediately apply to the Court for a writ of mandamus to wind up the Bonk. All the Bonks to furnish monthly statement, of their condition to the Commissioners, and the Commissioners to report quarterly to the Auditor of State. If the Banks refuse to let the Commissioner, search, their charter, are forfeited. By tho 10th section of the act pago 128, it provides that the Bonk, .hall not at any one time owe, by bond, bill, or other contract, exclusive of deposits, more than one and a half time, the amount of stock paid in, and stock note, .hall not be stock paid-in ; nur shall the Bonk, have in circulation at any ode time, in their bills, more than three times the amount of specie in their vault, belonging lo the Bunk, exclusive of deposit., and in case or excess, in this particular, the directors .hall be liable in their individual capacity, and after them tho stockholders to the amount of excess. The 1 Hli section provides that if the bills have been altered, tho Bonk shall pny them. 12th section the Bonks shall not buy their bills at a discount lUih section if Banks refuse to pay their notes in gold and silver, when presented, they shall pay twelve per cent, penalty as interest 14th section if the Bonks shall refuse to redeem bills in gold und silver or good Bonk nutes, for a longer time than thirty days, in any one year, tho Commissioners may hove the Bank closed up. Tho I5ih and 17lh sections, relate to the manner of closing up the Bonk. Tho Ititn provides it ollicers conceal any property to de fraud to bo sent lo Penitentiary. The 18th section provides if tho assets are not sufficient to pay the debt, of the Bonk, the Court shall render judgment against the stockholders for tho balance. In 1840, another act was passed. The 1st section provides over again for making out a stutcment of their alfairs otlen as they are called on, and to transmit a schedule, swoni to, to the Commissioners and Au ditor. 1 he 4th section if Bonk officers make a hilso schedule, they shall be sent to tho Penitentiary. 5th section ir Iho Bonks shall nt any timo refiiso to comply with tho provisions of this net, or the acts to which this is an amendment, or shall foil to muke a schedule when required, or shall refuse to give any statement when required, their charters shall be forfeited, and they shall be immediately closed up. Tho next year another law is passed. The 1st section Honks shall all poy their notes in gold nnd silver, and if they do nut their charters are forfeited. If they fiil to pay their hills in gold and silver, they shall bo deemed to bo insolvent 2d sectiun it the) hove forfeited their charters, they shall not make an assignment 'M section tho Bonk Commissioners shall apply for an injunction to close the Honks, ir they hove forfeited their charters. Tho balance of tho act up to the 24th section, provides for the proceedings against the Banks iu closing them up. The 21th section that after the bills shall be redeemed by the Receivers, they shall burn all of them in the presence of the Shcrilf and Auditor of the county where tho Honk wns created, and the Shentt shull give tho Receivers a certificate ot tlio ninount and number and denomination or tho bills that arc humcd ; and the Receivers shnll, in the pre- sence of the same officers, burn all they had on hand at the time they tuko possession, and have all the bills and burning registered. As it tcartul thnt the monster would from ashes spring into life and being again, the Sid section repeals so much of 1st, 2d ana fd sections ot tho law ol 18f!t as are inconsistent with this act; also, the 5th, lllth, 14th, 15'h, Kith, 17lh, 18th and 21st sections of the some act; also. the 7th section of tho set of 1840; but reserves all forfeitures and penalties under the fonner Inws. Tho Ulli section provides that if the Bonk ollicers reluse to do any thing that this law require, to be done, tficy snail go to Uie fenitcntiary. Ily a law passed in 1811, page 70, it is provided that all chartors, whether possessing Hanking pow. crs or not, that shall bo hereafter granted, shall be subject to slterntion, suspension nnd repeal, in the iligrrttion of Uie Legislature. You con scarcely open your Statute Bouk, but that you find some sido cut to hedge up tho way of Uie Banks. Are thoso laws such as the Legislature had any right to make? It is clear to mo they had not They are palpable violations of tho Constitution of the United States. J ho 10th section provnlioi that no stale snail moke an et pott inrio law, or low im pairing the obligation of contract!. These charters are contract, mode with tho State; cost vour eye nacK and aeo what their provisions are. they hod a right to lasuo three timus tho amount of tlieir capi- tnl, no provision how they should redeem their bills; and vast many other provisions, not contained in the old charters, that are made imperative upon them in these laws of 18:10, 1840 and 1841. You require them to poy their notes Unit hove been forged ; and it tho lfouks do not obey tho mondote ot your dic tation, you send Uiem to tho Penitentiary. You mako an express contract with them; they go into business under it; years afterwards, when there is a revolution in public sentiment ft revulsion in busi ncss and trade, Uio Buik. somewhat extended, tho' nothing like as much aa their charters permitted of tnem, you spring upon them ft now set ot low. un-heard of in any country, and which they could not comply with, a. they and tho country were situated, hy which you have destnyed the Banks and Bankers, The Hanks havo lost by these laws hundreds of dol lars, where the people hnvo ono; and the penplo, al so, by tho fury of party excitement havo lost hun dred. of dollara, where Uiey would one, if you had pursued the same course that a discreet individual would in his private affaire, when he found himself cmonrrasscd. Vhot has been tho rffect of these law. in detail ? In April, IKtt I have before remarked that wo had s, circulation nf $8,157,871, and $2,010,814 in spe ed in one month tho currency was reduced to $7,. 855,141, and tho specie to $2,5t!7,28li; in tho next month to 7,424,(il l and the speeio to rA-l-XVi and in January 1840 to $4,007,127, anil specie to $1,752,410; in January 1841 to $1,880,257, and in July or tho same year to $ UK 18,7: 12, and specie to $8:17,457 ; and in January 181.1, the Banks reduced tn ten, and thn currency tu $l,2;i2,45ti, and cuin to y lts',4 l.i. hat distress and cnuiusion must bo produced by any policy thot would, in a littlo more than two years end ft hair, reduce tho currency or ft nourishing and growing country from $8,157,871, to $l,rl,-M). it has porulvxed all enterprise, dcslny ed all confidence, and produced utiwirullc!cd distress and dismay, it ho. wrested tho property nl individuals from their hand by Uio strong ami of the law, and mono them paupers. I'etitious day by dny ad monish us of Uioso truths, yet before Uiem the power of party inlluence is inflexible and unyielding. By it you render embarrassment more embarrassed. By disregarding the snlcnm obligation nr your contracts, and adding to them new and infamous penalties, such as sending men to tho rcnilcntiary lor not perforin. ing what you require by vour new enactments you territrmen by your boldness and distrust Una it como to this, that in order to induce men to observe your Bank charters, you must guord them ith the terror, of tho Penitentiary ? II to our shame it be so, you might is well induce ft pmdenl cautious man to take a rattlo-anako by the tail to keep tho reptile from biting, n. tn touch your chatters. By tamper ing with your currency law. irein year to yoar, you drive the capital h-om vour State, and it is now taking place rrom day to dny to day to an alarming extent, oven in the city in which you are now legislating, and even among your own party. 1 u detor any one from bringing any among us. But the Senator from Richland soys it is an injury to have any Bank capi tal owned abroad, aa it only enable, the merchant nnd man nf business to get oxchanges, and bring property from ahread, and sell it on trust After the session or Uiis Legislature no Senator will be troub led in that way, I think. What air, I. our situation? Our Public Debt is increasing to an alanning oxtcnt Property is worth cotnwralivcly notliing. Taxes are increasing, and you are now searching every con- nd closet science by your oaths, and every pocket an by your ollicers lor new articles ot taxation. The Hon. Senator from Monroe says them are times that try men's tools. Would tn God they wmim u nun vwtvi. nib mi uio true policy. What currency do we want f To answer that inquiry we must look to our inhabitants, and see w hat are their habit, and occupations, and Uicir capacity to transact business. The property or Ohio is estimated at $500,000,000 1 and it is distributed among our inha- itant. more equally than in almost any other coun-ry. We are ft trading people. Our property, real and personal i. often changing hands. Wo want ft currency of at least $0,000,000 and ft Banking capi tal of $12,000,000, to make it perfectly safe. Our population ia increasing, our land is becoming more cleared. Our resources are not developed. Our en ergy, thouirh paralyzed, is not fully destroyed. If we had ft currency, and wise an stable laws Dy which we were permitted to use it we could extri cate ourselves from debt public and private, in a lew yean. The reople are all on tneir oars, watching every breeze from our halls, to convey Uie intelligence of the restoration of tlieir currency, wrested from them hy tho ruthless hand of party strife. Oh, it is truly piteous, to behold us, amidst such anxiety, contending about amending Latham's Bill admitted to he ft humbug. It ia said that a currency cannot restore the prices of property. Give us one, and six months will satisfy the most sceptical mind. Its very first office would be to inspire confidence in seventeen hundred thousand souls, and at would awaken energy, enterprise and ambition, lid men would hunt Uie world for ft market and it would be found. Thoy would then cross Uie ocean. hen as they now are, they would not dare step over rivulet created by a thunder gust We could come n competition with the products of other countries. Yourown citizens could buy, and not wait for others from abrond to come among us. The interest on your currency would be $:IOO,000 which would beso much saved to your Mate, xourcitizens would market their products. Business would be brisk. Property would be changing hands. Infinitely more property would find it. way abroad. That is always the result of the means to do business with. We could tako advautuge of favorable changes in the u.arkcts abroad, and not have to wait until Uie demand was supplied by others. New business would spring up among us. Old business, that wo have It tor want ot means to carry it on, would rcvivo, It is ono or the laws or trade that a neceraary cur rency will increase the demand for the necessaries or lite, and particularly so in a country whoso resources ure not developed. Business men would come among us, and cngago in business or all kinds. With ft currency, you could repeal your odious stay and ap praisal lows, and permit men to collect and pay debts. Pennsylvania with whom we are intimutely connec ted and we may be said to be the same people a po litical mania haa prevailed there and destroyed her currency. If her currency was as sound as it had been for thiity years up to 18:15, alio would furnish a market for nearly all our products. Before entering upon Uio discussion of tho luw and the amendment you propose, 1 will spend a few moment, in giving my viow. ot a charter. A charter is ft right conferred by law upon one or more personB fortheexer- ciso of some privilege, or performance of some busi ness in their acquired or corporate capacity, x here must be corporule elements enough in its created capacity to preserve its existence or it is of no public utility. As in tho instance of a Bonk, if you do not require among thcircreated responsibilities such provisions n. will insure the redemption of their bills as called for, the charter is useless for the purposes for which it wus enacted. When 1 come to another brunch or Uio aubjert, I will further attempt to illus trate it 'flic Senotor from Richlond remarks that tho ques tion before us is, shall wo incorporate the old Honks, or moke new ones ? And he answers tho quesUon hy saying, mako new ones if any. For, say. he, would you, if you were going to build ft house, take old materials, or buy now ones. I would answer him by saying, wo have no new materials, all nave been destroyed or taken off. If we had Uiem, no prudent man would dare to risk them in Uie building yuu propose to erect 1 here is but one way wo can do the iieoplo any good at this time upon this subject. and that is to continue Uie charters of Uie old Hanks with such restrictions as are necessary. But I re- gord this issue as banks or no Bunks. With all due deference to tho opinion of Senator, who differ with me, 1 cannot behove any thing can, or will bo none under your proposed amendment to Uie law. For I do not bcliavo it is any improvement of tho old. That has been in existence for one year. During that time not a single application to do business un der it It has been extensively discussed, and 1 be licvo by business men universally agreed to be im practicable. If men of your own party do not incor porate bonks under it, it is strong evidence sgainst it An oiler now to amend it shows your want of confidence in it. I will now take up Uio law and Uie amendment together, and 1 shall take the amend ment which ha. been adopted for the one under con. siderntion at the time I mado my remarks and which is now the law. The 1st section provides that all persons wishing to do business as bankers, shall comply with Uie provisions of this law. Tho 2d section, no company shall bo incorporated wiUiout being fonncd by petitioning tho Legislature tor an act of incorporation Kiting forth many Uiings in Uie petition. Ud section. Every such bonk shall have succession by its corporate name may suo and be sued, may purchase and hold reol estate enough to set Uie bonk in and no more, and such personal prop. nrty a. may bo necessary to carry on business; mny elect a board of Directors and President to keep an offico or discount and deposite at Uie place or its locatiun and at no other, and may issue bills or bank notes for circulation, payable to bearer; and the bank not to commence business until all its capital is paid in in gold or silver, and the capital to be examined hy the Commissioners nnd certified lo by the Register. The first amendment directs who sliall be eligible as Directors and that two-thirds of the Director! shall bo necessary for tho transaction or business, nnd renewal of notes, and no loon shall be made for more than aix months and no obligation shall be discounted or purchased by the hank that ha. more than six months to run. Every Director shall be presumed to possess such knowledgo of Uio nlfoirs of Uie hank of which ho is ft Director, &s to enable him to judge wheUier any act done or performed, or omit ted is a violation ot tin. act or ot the act tn which tins is an amendment. It shall not he lawful for tho bank to declare any dividenda in case the capital stock of such bank shall be impaired or reduced by losso. or bad debts until .aid capital nock be fully restored and tho bnnk violating this provision shall be held to bo insolvent, and Uie Commissioners shall forthwith proceed to close it up. This last provision leaves it in the power of Uie Bank Commissioners to examine tho alfairs of a bank and if they think the capital stock of Uie bank impaired by bad debts, or in any other way to close the bonk and declare it insolvent Tho late or tho bank is left to the judg ment wnun or caprice ot ft single man. tlow easy it is to get up ft cry against n bank and close its con cerns. INo man over ought to ho vested with such discretion. Requiring Uie Directors to possess such a knowlcdgu or the alfairs or Uio bank, as to judge whether any act done or omitted is a violation of the charter. And then make them liable if they should misjudge individually, no prudent man will ever placo himself in that attitude. It ia out of tho question to require all the capitol to be poid in gold and silver before they begin busi ness. Make a provision that when ft given Amount is poid in, they may issue in proportion to what is piid, the saino provisions as ftra contained in Uio Circloville and Clinton Bank to which 1 havo relerred you. If the bank has t capital that will dn comimi mty any good, the amount cannot bo raised snd it would bo dead capital for ft long timo before loons would bo mnde. '1 here are some provision, contained in Uie 7tli section which are improvement, upon somo or all tho old charters. In the lthrlof Uiat section, Uio banks are prohibited in these words uimr shall any bank employ ftny broker lo transact any business or bo concerned either directly or indirectly in any way whatever with any broker, or in any brokerage business." To deny to hanks the privilego nf employing such men lo do thoir business as they please, and not to doal at all with ft certain class, is a most extraordinary provision. A man must bo eager indeed for banking who will submit to such humiliating restrictions, but if they do it or violate any of Uie provisions contained in any of the proceeding sections, they shall be fined in any sum not exceeding $5,000 nor less thon $1,000 and be imprisoned in Uie dungeon ot Uie jail and led on broad and water, not,cxcoeding six months nor less Uian one mouth. Tins is i most degrading provision to be under Uie necessity of inserting lo prevent the violution ot such restrictions as 1 have described, it mu't make an houost man blush when ho looks st the charter. But the Legislature did not expect an linnest man would bank under it or they would never have mndo such a loothsomo inference. U section. No officer, of Uie bank shall discount paper that directors hove refused. 10th section provide, if on one concerned in Uie bank .hall ouibetzlo any of the property, or commit any breath of trust with intent to convert tho same to their own uso, Uiey aholl be imprisoned in Uie Penitontiary. An excellent provision for regno, and also to prevent honest men from being led into temptation. II til section. .No DonK shall at any time owo, except for deposits more than one and a hall time Uie amount ol Its copitai paid in and remaining therein as slock and tho loan, and discounts of Uie bank shall not at any time exceed twice Uie -amount of Uio capitol stock paid in, and all loan, over that shall bo void and the director, con- dends. 13th section the banks shall not have in circulation at any one time an ftmount of Uieir bills greater Uian Uie amount of their capital paid in, and shall at all time, keep in Uie vaults of Uie bank one dollar in coin for every three of paper in circulaUon. in looKing over me issues oi ine dboks tor uie last eight years, even under Uieir old charters which permitted Uiem to issue three times the amount of their capital, Uioy very seldom had in circulation more Uian Uiree Umea the amount of coin nn hand. I suppose if new banks were now to be organized it would not be an insuperable objecUon that Uiey were restricted to issuing only throe limes the amountof specie and not to owe oyer once and a half the amount of their capital if Uie charters in other respects were unobjectionable. Under these provisions Uiey are required to discount on their coin, and also on depoaits, if they should come up to double the amount of capital, as i. provided in the 11th section, for they are not permitted to have of Uieir own bill, out at any one time, more than Uie amount of their capital. The 14th, 15th and Kith aection provides for having a register appointed, who shall register all bills put in circulation, and if he doc. not do it he shall go to Uie Penitentiary. 17th aection the bank shall be taxed to pay the Bank Commissioner and Register, and their expenses; and by 20th sec, a State tax of one half per cent, and as much more as the Legislature shall impose from time to time. These provisions for taxation in the discretion or the Legislature, are absolutely fatal in Uio minds of prudent and discreet men. For ir the Legislature in future are lo have the same viow of ditcrtlion towards bank. a. they have had from 1830 until now, Uie banks would bo mere play things in their hands, a. much so as was Samson in Uie hands of Uie Philistines after he was seduced and had lost his eyes. By Uie amendment the 18th and HHh sections are repealed and re-enacted again. The 21st and 22d sections arc Uie only ones repealed, that were of any consequence. 23d section-stock may be transferred in such manner as a majority of stockholders may direct or the law provides. 24th section the Recorders of the county shall record Uie names of stockholders, and the amount of atock, and the banks to post up the name, of stockholders. Tho 25Ui section providing for personal liability is repealed and re-enacted again in Uie amendment in ft worse shape. It is claimed by Uie Senator from Richland, and also by him from Licking, that the Scotch Hanks, nnd also Uie Banks in North Carolina, Maine, Rhode Island, and Massachusetts, have adopted this principle. I will consider it first upon authority, and then point out the objections to it upon principle and utility. There are but Uiree Banks in Scotland that are chartered by the Government Tho oUiera sre all senting to it shall bo liable in individual capacity. ik. i.hi. niu. ii.,:.. j:..l. . 11, AHH .Oltlvil N iuiw iii gmMUi M.tl- private joint stock companies, mere partnerships. The Bank of Scotland was the first and chartered in Hi! 15, and they gave it Uie exclusive privilege to Bank in Scotland lor twenty-one years ; Uie caintal itock was exempt from all the burdens ol the uov- eminent and the responsibility of the stockholder. wa. limited to the amount ot Uieir .hares, ihe Royal Bank of Scotland wa. incorporated in 1727 upon tho same principles, and in 1740 Uie British Linen Company waa incorporated with the same provisions. All the others are mere private associations self constituted ; they choose their own partners, and are in a wealthy, compact community, tjur uahk. bear no analogy to those. Our. .re subscription Banks, no power to chooso who shall or shall not be stockholders. We hove to hunt tho capital where wo can get it at home or abroad. If our people had the means, and were permitted by law to fonn such Banks, there would be no obicction to being person ally liable; and it is a principle of associations like Uiose that they are so liable. These private associations in Scotland are very popular and useful, and said to be almost a perlcct model ot flanking; but the people of Ohio are denied a public currency, and also nil private individuals are denied the privi. leo-e of Bankinir. - in North Carolina, in lw4,the llnnx nt newborn wns incorporated with a capital of $.100,000, one- fourth of the stock to be paid in gold and silver, or us ciuieu4cm, ni uie tune uie iuigi t laavu, aim uicn it may go into business ; it may issue two to one ovor the sUick ; and shall not deal in land or other things not connected with Banking; it shall pay an nually a tax of twenty-five cent, on each share, and the shores are $100 each, and to make ft report once ft year tn the Legislature ; and in case of insolvency of the Bonk, or ullimato inability to poy.tho individual stockholders shall be liable to Uie creditors in sums double Uie amount or stock by them held. I am referred to such ft charter as a precedent for the provision contained in the proposed amendment ma king individuals liable; which 1 will soon explain. The Khode island Statute simply provides thst the Banks shall not owe more Uian the amount of stock paid; and if they do, the Directors under whose administration ii nnppcncd snail oe naoie in their privato capacity. This prevision i. no more than somo of our old Statute, contain. The Statute of Maine provide, that Uie Bank, .hall not at any nne time, owe to exceed twice tho amount or capital, exclusive of deposits, nor shall there be due to the Hank at ono tune more than double the capital paid in If these provisions are violated, Uie directors under whom it happened shall be liable lor tho excess in their private capacity ; and it any loss or deficiency shall arise out of any official mismanagement of the directors, such directors shall be lia ble in their private capacity to pay, and it the direc tors are not able, Uie stockholders shnll pay to Uie amount of the stock then owned, and Uie liability shall not continue beyond one year alter the stock holder shall have sold his stock, and at Uie cxpira tion of Uie charters, the stockholders shall be liable to redeem the bills in proportion to Uie stork that they then hold, but the liability shall only continue for two yean. These provisions bear no analogy to these you propose. The Statute or Massachusetts provides that one half or the capital shall be paid in before its Hanks go into business. They shall not owe more Uian double the amount ot slock. It the directors Bholl mismanngo in Uicir official capacity, they are liable, and at the expiration of the charter, the stockholders are liable as they are in Maine. These are all the authorities that are relied on tn sustain the individusl liability, and it I. not sustain ed in Uie least and 1 am bold to say it ennnot be by any authority and example extant But it is tho in vention or a political disease that has swept over ynur Slato. Your proposition is Uiat the stockholders shall be severally liable in their individual and private capacity lor any claim agains: Uie Hanks, ex ccpt when Uiey contract dillcrently in relation lo de posits, and Uie liability snail oe imposed as loilowsi The Receiver, who take charge of Uie Bank, shall, within ten days, make out ft statement of the active assets ot the Bonk, excluding doubtful debts, ana all that have ovor ninety dnys to run, and all real prop. erty and if in the opinion of tho Receivers, tho assets when reduced lo cash will not be .ufticiont to redeem tho liabilities, it .hall be the duty of the Receiver, immediately to collect Uie residue from the Directors by Scire Facia, in Uio name of Uie Stato of Ohio, against the Directors in tho State, calling upon them to show cause why execution shall not is suo against Uiem for tho amount the Receivers see tit to fix, and Uie execution may be ordered at Uie appearance term. And ir Uie execution i returned unsatisfied, thoy shall immediately procoed to collect it from tho Stockholders in Uie samo way and manner. Any person who may havo any of Uie bill, ol tho Bank and ahall deuiand .pecio and It is not paid, may sue Uio Hank, snd II they cannot collect it may proceed against uireciori anu btocaiioiden aa ia above provided. And the writ ahall not ftbato for non-joinder of the Directors or Stockholders, and if too many ho sued, no matter, the writ is good, or if the Directore or alockholdora nvo out ot the Stale, they may bo served by notice, or any other way the Court ahall see fit And the Stato of Ohio shall have a lien on all tho real property of tho Directors and Stockholders ol the Hank tor the boneht ol Uie cred itors of Uie Bonk, from Uie dato of Uie application of Bank Commissioners for the appointment ot Keceiv era. I will now ask, will any man enter into an obligation ol'this character, and to be forfeited and en forced in thia manner, where he is hemmed in and fettered up in every shape and form thai tho ingenuity of man can devise, without Uiis ? If he will, ho must be ft lover of this new faugled Democracy. By it thore is a lien on all his real proporty from tho time ft Bank Commissioner .hall take it into h head that the Bank must be closed, and it cannot be discharged until all the bills are redeemed. From tho time any war shall commenco upon Uie Bonk, ten dnys need not expire before thcie is an execution aerainst vour private property. 1 here is not a 1'olcn- tate in the Old World that has more perfect power ovor his subjects, Uian the Bank Commissioners have ovor your property. By it vou can reach men in lor eign States, and obtain judgment against them by inserting ft notice in ft county newsiapor. 1 he i-oui' uiissioner. are not restricted to any forms of law, 1 hey ovorrido all in their fury to overtako the Hank. or. There may be property enough in the liotiK pny all, yet it is too tnnlv to satiate tin. clomorer against Hanks. 1 ou cannot lino ft liana ciiortcr in Christendom so strong, so guarded as is this, without the confiscntion of one's private property. You might guard it with an armed force, and yet no new security would be gained. Will men when entering into contracts, yield every Uiing they havo to gratify in idle whim, even ir Uiora wai no oUier objecUon. Some of the objecUons to becoming personally liable are the following. The Banking companies are fonn ed by subscription as I before said. The Stockhold ers have no power to select such as they pleam to take stock. The contract in part is of ft public na- Their powers and liabiliUes are created br law. They are artificial. The creator has power to impose terms, and the created, if he enters into Uiem, cannot release himself at pleasure, as can private individuals. K he become, weary or Uie bu.ines, no matter. Ho cannot get out or it He ha pledged bis corporate property, and rule, are prescribed to conduct and take care of it He owns but a small part of Uie atock, and to hazard all he ha for the chance of making four per cent, (and I firmly believe no more can oe mane irom year lo year j no man wno has ordinary cauUon will do it It must be remembered if a man own. but one hundred dollar in stock and the Bank has trouble, he may have swept from him all he has, for he is liable to redeem all Uie bills, and Uiat liability may overtake him suddenly, for pub lic sentiment is as freakish as the cloud, of summer. Stockholder, are constantly changing. Children and married women are becuming owners by death and testament and men will not submit to have all their property hampered and holden for all the ultimate ontingencies that may not happen during Uieir lite may happen in six months, 1 know how men reason upon this subiect I now their political attachment to it They say I am liable for the note. I contract why should not the rich bankers be liable for their notes. When E give my notes, lot Uiem go where Uiey will, I mi to redeem them. But are you litre Uie case, are paral lel? Is there any rational analogy between them? ou buy an articlo of property, and give your note for it the business is entirely within your control. But the case of partnership is more like banks ; but see the plain dilference from what I have laid, and what follow.. In bank. Uie buainesa ii controlled and governed by votes, and Uie majority rule. Two Uiirda of Uie directors have a right to discount psper and do any other business. You are ft director, and you are opposed to the majority, but you cannot con trol uiem ; and they do business in a way that the bank may have trouble. Will you run Uie risk or )o- ing an you nave t w in you submit your property such unlimited power as is given by Una amend ment ? There is not ft fanner iu the country, no matter how much spare means he ha., no matter hat his politic, are, if be will study Uu law and the amendments, and reflect upon the feeling gainst bank., that would dare take atock in it Not because the charter i. not strong enough, but because of Uie extraordinary manner of reaching indi- iduai property. I have no objection to make mdi-duals liablo if they commit fraud, they ought to be liuble for it in all forms, and that wo. the extent of Uie law. in the different Slate, to which I have referred, except when the charter expires by it limitation. But every one to which 1 referred contain entirely dilferent and more liberal provision. Uian does this. But sir, personal responsibility is ot no utility to community. When ft bank become, di.-crcdited, if it. ullimato means are abundant, and even its stock worth its face, yet its bill, will be discredited, and irem'the tact they cannot be instantly redeemed. But put the case in a stronger light, and soy il ha no means but unlimited personal responsibility, and your Commissioners go to work, and then cornea your stay-laws and your appraisal law, and no n.oney to buy property. The holders of the bills cannot delay, and pay the expenses of suing, and will sell Uie bills at a discount or twenty-live cents. Hence it is, Uiat I said a charter must con-lain it. corporate principles of life, or it is good for nothing. Make a charter liko this. The bank shall redeem it bills in gold and silver it shall not owa more Uian once and a half the capital stock paid in, exclusive of deposit it shall not have more due to it at any one time than twice the amount of capital. and I believe Uiey would be willing to have thoir issues confined to three times the specie in the vault, it snail not deal in Dunnes, not connected with banking, restrict it to amount of loans to one individual, or to officer, of the bank to make quarterly report, to some responsible tribunal have the affair, inspected by some ollicers in the county twice ft year, and other incidental provision, soch as may be necessary. i he 2lith section provides who shall be stockhold ers. The 27th sec. makes the officers liable if they mismanage: and if the bank becomes insolvent it shall be evidence of mismanagement Nearly eve ry section in tne law contains some most extraordinary nroviflions. The 28th is renealed. a. ia also this 2.1th. The 30th prohibits issuing bill, bills between $5 and $10, or $10 and $20, or between $20 and $50, or between $50 and $ 100. Notes leu Uian fire dollars are prohibited. This is an inconvenience, and productive of no good except as ft step to hard money, and the whole Taw and Uie amendment look only to that object The Virginia Legislature this year repealed the law prohibiting Uie issuing of notes less man nve dollars, rne 31 sec. I repealed. There is in Uie lOOi sec. of the amendment a pro vision that any atockholders may require Uie Commissioners to examine the atfaira of the bank, and if Uiey find one fifth of Uie stock sunk by bad management, they ahall at once close it up. How dangerous is such ft power to the prosperity of ft bank. iiuw oiieu ib it mat uiincuiucs arise oeiween stoca-holdors,and the Commissioners might have Uieir ears poisoned with Uiese complaint, and with these tbelings giving them diBcreuon to judge of tho whole business of ft bank.and immediately closo it I repeat is fatal to the prosperity of Uie institution. By the amendment you propose to incorporate live new bank under Uii law. Not one of these bank have asked to be incorporated under it, but all have refused, and asked you to strike out their names, but ou refuse, except in one instance. 1 do not know nit some banks can be found to do business under the law, but I do not believe it There are five banks now doing business, Uiat you bring under Uu. law one year hence. Why not do it now, if Uie law is good one ? hi for effect These banks will now close Uicir business. A largo amount of their stock ia owned abroad, and they will not and cannot submit to these rules, and thereby haxard all. Reserving a right to alter, or amend, or suspend a bank charter at Uie discretion of the Legislature, is fatal to it prosperity. See the exercise of it in Uie case of those five banks, as a practical illustration of Uie mle. A Bank cannot be prosperous to Uie public, or to itself, if it. liabilities are subject to be changed ft-nm year to year. If you pas. Uiis bill and do nothing more, I have often aaid, and now my, it is a hard money uiumph. Will you, I ask with unfeigned sincerity, abandon the policy of your State from her early history, under which, by the intelligence, industry, and enterprise of her citizens, she has advanced with unexampled prosperity to Uie period of her embarrassment produced, not by banks, but in ft great measure by the indiscriminate war of extermination waged against them? Will you, because some of them have been unfortunate, abandon Uie others, and with Uiem the system. Will you say Uiat because one man or one nation haa fallen, Uiat there ahall never exist anoUier. Just aa absurd is your po licy. If you go nn with Uiis course what is the consequence. All our currency will come from abroad. The interest on that autn will be a dead loss to the poople ol this Bute of frem two to four hundred thousand dollars, and the character of the currency is t matter that Uie great mass of Uie people know nothing of, and feel unsafe with it But do business they will. If you take frem them their currency, you cannot take from them their spirit and their energy. They will arise in their majesty and examine Uie cause or this mighty change in Uie currency, and ir you have erred, Uiey alone will correct it ThurWar, Perrr9J, 1843. IN SENATE. PftiHtrnt. dr.. preitnted. Ilv Mr. Stanton, from riliiM.a of Locan county, for a Hank charter, wilh ;m),0!I0 rapilal. nn pni.i in, miu wnn ten, 10 uMn inrns nottsn in paper 10 Quoin perte, Ar., under Ihe law of tail winter, and any aHdilioaal rrsinrlioatMhirh may be ensrled sl the present srtaioni um Itank 10 he located at Hrllrfonlaine, Logan roiinlv referred to Mr. Nlnnlis). Hy Mr. Parker, the pmeordinsa' of a steel. ins; of fitness of l.irkinf rmmly. on the mihjertor the asMimp. Inn of tllale debts hy Ihe (limeral timemment. Ilv Mr. Waltoa, Irotn rtlitena of Waihinrlon, Uuempry eounty, lor nn arl supplementary lo Ihe chatter of said town. Hy Mr. Ford, fnnn ritiiem ol' rieveland, for die repeal of the eily charter, fly Mr. Npalon, ftom rtlitena of Tnitnhiill emtnty, for lite repeal of all law. requiring process lo be served thirty dHva belore Iho term of Court i also, fnimeertsia f intent id tntd county, for aulhnniy to tell certain land. Hy Mr. Karl? lev, fr.uu ritiKimt ol Hii-hlaiul comity, Ibr a new road frost Mimslirld to lli-llvillo, in taul county t also, a mestonaj ia favor of Ihe completion of Ihe WalhiNtdiiie Canal. Mr. Aien, from the eomnullee oa l orpnr.lietw, reporlisl hark Ihe hill lo incorporate the tttiio Ktre Rnfine and Hose Company of Ihe town of r'ullon l and Ihe bill to ineornprats the ltiiloMn Fire Kngiue and Hoes Company; and they were ordered 10 a third reading. Mr. Kniiiklin, from Uie enniniitiee on Pnblie Intlituliont, reported bark the resolution lor Ihe sdmitsion of Mamuel t'oe-lege, an unnaiuraliied loreigner, inla lae Lunatsa Aiyluai, whist it was adopted. Mr. Ncwinii, Irom amalority of tht committee on the CStr- rencv. reported hark the hill to revive ami ame id the arl ean lied "an arl lo incorporate Ihe tlorkholtleri of the wet a Heteive tltiik," patted March 10, ISIS, reeoatieamLax lis paage. 1'liis hill underwent foosiderable diiciMtlon. sreniri. Ford ami Noaion supporting il, ami Meurt. VY alio., ratter, l.ehin, nnd Hartley, upiosing il. In order thai the public mty have an opiHxtiiuiu of acemg the rharan of ll.i, bill, rtjieUd as Ihe stiitenv. rerlwnennrotieof the heal Hanks thai ever on' I itled in lint Mlate, it is uueruW keie al HMgut :